undestanding your autoinsurance needs

Understanding Your Auto Insurance Needs

Just because your state requires a minimum amount of insurance doesn't mean that's exactly what you should purchase. In fact, most motorists purchase more coverage than their state requires so that they are covered for a variety of problems -- not simply a fender bender. In order to better determine your auto insurance needs, consider these five guidelines:

Know Your State Laws
Remember that forty-seven states require that you purchase liability insurance. Liability insurance is what pays for bodily injury and property damage that you cause another driver. Fifteen states including Florida, Maryland, Michigan, Massachusetts, New York and New Jersey also require that you buy Personal Injury Protection (PIP). This coverage pays for your medical expenses and lost wages in the event of an auto accident. Your insurance minimum will most likely be determined by state law, but many people are encouraged to purchase more than is required.

Know Your Options
There are a lot of car insurance options; but knowing what you most likely will need is the key to making sure you are appropriately covered. Do you want coverage for a rental car if your car is damaged? Do you want an extended warranty to pay for parts and labor if your car breaks down? If your car is leased, you will probably need gap insurance which pays for the difference between what your insurer pays and what you owe on your lease if the car is completely totaled.

Know How Much Money You Want to Spend
If you know your state laws and have examined your personal needs, now you can put together the different pieces of auto insurance coverage in one total policy. The first piece of the policy is almost always liability insurance. If you only have minimum liability coverage and you injure someone, their attorney can go after your personal assets. So, you need to know your assets and what you can afford to lose in the event of an accident. Many insurers feel that minimum liability is a gamble. In fact, that is why it is often only a little more money for more protection. After all, if you do get into an accident, it is much better for the insurance company to be responsible than for you to be personally responsible. Remember to run through various scenarios such as if I totaled someone else's car, will my insurance cover it? How much will I have to pay out of my own pocket? The answers to these types of questions will determine what coverage makes you feel most confident should an accident happen.

Know Your Vehicle
If your car was totaled, would you be able to afford to replace it? If not, you will want comprehensive and collision coverage. The decision to buy this coverage is usually based on the value of your car. Guidelines usually suggest that if your car is worth less than $2,000, it won't be worth it to buy comprehensive and collision. If you own a $50,000 car though, it would most certainly be worth it to pay an extra $200 annually or so to insure that your car will be replaced if you get in a serious accident.

how car insurance works

If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage?

Forty-seven states require that you have at least some kind of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident.

Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record and the amount of money you are willing to pay. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.

In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.

Types of Auto Coverage

Everyone who drives needs car insurance. In fact, most states require it by law. When you buy car insurance, you are buying what is called a policy. Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage.

The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your state and some of the coverage may be optional.

• Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.
  
  
• Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.
  
  
• Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.
  
  
• Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.
  
  
• PIP - Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.
  
  
• Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.
  
  
• Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.
  
  
• Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

Many insurance policies combine a number of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It's good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident.

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FEATURES AND BENEFITS

Why get auto insurance from The Hartford? Because it’s more than a car. It’s part of your way of life. That’s why our comprehensive insurance package of benefits and services makes all the difference.

Not all features and benefits are available in all states.

RecoverCare

Even when you’re injured in a car accident, the rest of life doesn’t stop. That’s why with our auto insurance coverage, we help pay for you to get assistance with cooking, cleaning, shopping, transportation and even yard work if you need it.

Lifetime Car Repair Guarantee

Get service you can rely on. If you use one of the more than 1,400 certified auto repair shops in our Hartford-approved network, we guarantee the workmanship on covered repairs for as long as you own or lease your vehicle.

No-Drop Promise

You’ve got a lot going on. The last thing you need to worry about is losing your car insurance. With The Hartford, once you become an auto insurance policyholder, you’re assured continued coverage as long as you're able to drive and meet a few simple requirements.^†

24/7 Insurance Claim Hotline

Car accidents and breakdowns don’t just happen during business hours. Our auto insurance claim experts are available for you anytime, day and night, to escalate your problem and get you back on the road.

New Car Replacement

If you experience a total loss of a new car within the first 15 months or 15,000 miles after you purchased it, we'll pay the replacement cost of a new vehicle—the same make, model and equipment—with no deduction for depreciation.

Auto Insurance Upgrade Features

In addition to all the standard features we provide, you can get a car insurance quote with our Advantage Plus package that offers these additional benefits:

First Accident Forgiveness

We believe in forgiveness. If you qualify for this benefit and you have a car accident, it won't count against you, and your insurance rates won't go up because of it.^††

Disappearing Deductible

Good driving should be rewarded. Maintain a clean driving record, and we'll reduce your insurance collision deductible by $150. We'll continue to reduce the deductible by $50 each year you keep your good driving record—until it reaches $0.^†††

Waiver of Deductible for a Not At Fault Accident

If a car accident is not your fault, then why should you have to pay your insurance deductible? In most cases, we'll pay the full amount of covered damages and the deductible too.

$100 Deductible Waiver for Choosing to Use an Approved Repair Shop

Take your car to one of our authorized auto repair shops and we'll waive $100 of your insurance deductible. Plus, you'll receive a guarantee on the workmanship of claim repairs. ($100 waiver not available in AZ.)

Note: Depending on your state, not all features and benefits will be included in your car insurance quote

COVERAGE BASICS

Auto Insurance Coverage

Here at the Hartford, making sure you’re covered is about more than just repairing or replacing your car. It’s about making sure that nothing gets between you and your regularly-scheduled life. Here are the kinds of car insurance coverage we offer, how they protect you, where they apply, and our recommended limits.

• Bodily Injury Protection
• Property Damage Liability
• Uninsured Motorist Bodily Injury
• Uninsured Motorist Property Damage
• Underinsured Motorists
• Personal Injury Protection (No-Fault)
  

• Medical Payments
• Collision
• Comprehensive
• Full Glass
• Towing & Labor
• Rental Reimbursement

Not all coverages are available in all states.

Bodily Injury Protection

Bodily Injury Protection protects you against financial loss when you are held legally responsible for an automobile accident causing injury or death to someone else. This auto insurance coverage also includes the legal costs involved in your defense for a covered suit as well as court costs and bail bond expenses.

The auto insurance coverage amount is a "Split Limit," such as $100,000/$300,000. The first figure is the maximum limit provided for one injured person. The second figure is the limit provided for two or more persons in any one accident or occurrence.

Determining Your Limits

Liability protects you if you are at fault in an accident. If your car insurance coverage doesn’t carry enough liability, you could be sued for your personal assets: your home, savings, investments, or income. When you’re determining how much car insurance coverage is appropriate for you, it’s important to consider all the assets you want to protect.

Property Damage Liability

Property Damage Liability covers you against financial loss if you are found liable for damage to other people’s property (e.g. light poles, fences, another vehicle, etc.) caused by your auto.

Determining Your Limits

Liability protects you if you are at fault in an accident. If your car insurance coverage doesn’t carry enough liability, you could be sued for your personal assets: your home, savings, investments, or income. When you’re determining how much car insurance coverage is appropriate for you, it’s important to consider all the assets you want to protect.

Uninsured Motorist Bodily Injury

This auto insurance coverage pays bodily injury or death expenses for you and any passengers in your vehicle up to your policy limits if you're struck by a driver who doesn’t have insurance, or if you’re struck by a “hit-and-run” driver that you cannot identify.

Determining Your Limits

Generally, your Uninsured Motorist coverage should be equal to your Bodily Injury Liability, so that you provide the same level of coverage for yourself—if you’re injured—as you would for others.

Uninsured Motorist Property Damage

This car insurance coverage pays for damage to your vehicle when it is struck by an uninsured driver, a hit-and-run driver, or an insured driver whose Property Damage Liability limit is inadequate to cover the property damage losses incurred.

Determining Your Limits

Consider a limit of liability that will be sufficient to cover your vehicle and/or its contents in the event that you are in an accident with a hit-and-run driver, a driver with no auto insurance coverage, or a driver who has some coverage, but not enough to cover the damage to your vehicle.

Underinsured Motorists

This car insurance coverage pays benefits for the bodily injury or death of you and any passengers in your car if you are involved in an accident caused by a driver who has some insurance, but not enough to cover the losses that result from the accident.

Determining Your Limits

Generally, your Underinsured Motorist coverage should be equal to your Bodily Injury Liability, so that you provide the same level of coverage for yourself—if you’re injured—as you would for others.

Personal Injury Protection (No-Fault)

This auto insurance coverage pays benefits for the cost of personal injuries resulting from an automobile accident. Coverage applies without regard to who was at fault in the accident. It applies only to injuries, and does not cover damage to a car, or to any other property. Coverage is provided on a per-person, per-occurrence basis.

Medical Payments

This auto insurance coverage pays reasonable and necessary medical expenses, up to the selected limits, directly resulting from an auto accident. This may include medical care, recovery, rehabilitation and remedial care, as outlined in your policy. Coverage varies by state.

Collision

Collision coverage pays for damage to your covered vehicle (up to its actual cash value), less the deductible amount, for losses caused by collision. Collision means contact with a physical object, such as another vehicle or a structure.

If you plan to purchase Collision coverage, selecting a higher deductible generally helps to reduce the cost of your insurance.

This car insurance coverage is available only if you carry Comprehensive coverage.

Determining Your Limits

Recommended for vehicles 7 years old and newer with a deductible that is financially comfortable for you. Keep in mind you may be able to lower the cost of your coverage by choosing a higher deductible.

Comprehensive

Comprehensive coverage pays for damage to your covered vehicle (up to actual cash value), less the deductible amount, as a result of damage caused by events such as fire, theft, glass breakage, riot, windstorm and hail.

If you plan to purchase Comprehensive auto insurance coverage, selecting a higher deductible generally helps to reduce the cost of your insurance.

Comprehensive is often required when your car is financed or leased.

Determining Your Limits

Recommended for vehicles 10 years old and newer with a deductible that is financially comfortable for you. Keep in mind you may be able to lower the cost of your auto insurance coverage by choosing a higher deductible.

Full Glass

This car insurance coverage pays the amount of a covered glass loss with no deductible. This full glass coverage is optional and can be purchased for an additional premium.

Towing & Labor

This car insurance coverage pays up to the selected limit for towing of your covered vehicle when it is inoperable, whether or not there is an accident involved. (Note: You must also select Comprehensive coverage to obtain this coverage.)

Rental Reimbursement

If your car becomes inoperable due to a covered loss and you need to rent a substitute, this auto insurance coverage pays the cost of the rental car up to your policy limits.

This coverage is available only if you carry Comprehensive and Collision coverage.

WAYS TO SAVE

Affordable Car Insurance

It’s in our best interest to have your best interest at heart. That’s why we’ve come up with a variety of credits and discounts that can make your policy even more affordable. After all, the more you save on high-quality affordable auto insurance, the more you have left over for the other important things in life.

Availability to each of these credits or auto insurance discounts may vary by state or policy plan.

Defensive Driver Credit

If you've completed an approved defensive driver course, you're eligible for an auto insurance discount from us for the next three full years. Just send us a copy of your certificate, and we’ll apply the credit.

Home/Auto insurance Bundle

Bundling your insurance coverage just might save you a bundle. If you have homeowners' insurance and auto insurance with The Hartford, you can see significant savings for both.

Driver Training Credit

Receive a credit on your premium for drivers under 21 years old who successfully complete an approved training course.

(In Georgia this discount applies to drivers under 25 years old.)

Good Student Driver Credit

Get a credit for full-time student under the age of 25 who owns or operates a vehicle insured by The Hartford and qualifies as a good student.^†

Air Bags Discount

We care about your safety. That’s why our auto insurance has a discount for cars with automatic air bags. If your car is equipped with more than one air bag, you save even more.

Anti-Theft Device Discount

We reward you for making your car harder to steal. If you have active or passive anti-theft devices on your car, it can save you money on your Comprehensive coverage.
ONLINE TOOLS

Online Tools

Interactive Car Insurance Coverage Guide

The Hartford’s Interactive Car Insurance Coverage Guide can help you determine the right insurance coverage for your individual needs in minutes.

Auto Repair Shop Finder

When you choose a shop within our repair network, we guarantee the workmanship on covered repairs for as long as you own or lease your vehicle. And because we work directly with the repair shop on estimates and payments, the process is easier for you.

car safety

Car Insurance

Liberty Mutual Has You and Your Wheels Covered

• 

  We can simplify your life with a wide range of benefits, features, and services designed to help you save money on your car insurance and get you back on the road quickly when you have a breakdown or accident. It's all about car insurance you can depend on.
  
  Car Insurance Coverages - Protecting Yourself and Your Car
  You hope you'll never need us, but when you do, you'll be glad you chose Liberty Mutual car insurance. We'll help make sure you have the right coverages for you and your car.

  • Liability
  • Medical Payments / Personal Injury Protection
  • Uninsured / Underinsured Motorists
  • Collision
  • Comprehensive

  
  Car Insurance Benefits - The Extra Features You Deserve
  We believe responsible drivers deserve more than just basic coverage; that's why we provide additional benefits including:

  • Accident Forgiveness
  • New Car Replacement
  • Unlimited Rental
  • Multi-Policy Savings

  
  Car Insurance Claims - We'll Be There When You Need Us Most
  When you have a claim, we'll work hard to get you and your car back on the road quickly with:

  • 24-Hour Claims Assistance
  • Fast Appraisals
  • Total Liberty Care Facilities
  • Legal Defense Under the Policy

  
  eService - Manage Your Policy Online
  Convenient account service and management.

  • 12 Month Policies
  • Convenient Payment Options
  • After-hours Policy Services
  • eService online account management

Motorcycle Insurance

Motorcycle Insurance

Motorcycle Insurance You Can Depend On

• 

  Whether you are on a midweek cruise or a weekend trip with friends, your thoughts are far away from insurance - and we'd like to keep it that way. If you have an accident, phone us 24/7 to get the process rolling immediately. And if your bike ever breaks down or gets a flat, we'll be there for you with our emergency roadside assistance program.

  Protecting You, Your Bike and Your Weekend
  It's your motorcycle, and it deserves the best insurance coverage. With Liberty Mutual, you get a great product at a great price that's guaranteed for 12 months.

  New Motorcycle Replacement Coverage
  If your new motorcycle* is stolen or declared a total loss within the first year, we'll give you the money to buy a brand new motorcycle - no depreciation applied!

  Accessory Coverage
  Enhancements and equipment permanently installed on your bike are covered when you select this coverage. Basic coverage is included at no additional cost when you purchase Comprehensive or Collision coverage, and additional coverage is available.*

  Emergency Roadside Assistance
  We'll arrange for help any time, anywhere in the U.S. and Canada. The arrangements are free, and if you have our Towing and Labor coverage, the cost of towing is covered, subject to your policy's limits.**

  Towing & Labor Services
  We'll provide a tow on a flatbed to ensure the safety of your bike if it breaks down, for less than $10 a year.**

  There When You Need Us Most
  And while emergency roadside assistance is a benefit you'll be glad to have, it doesn't take an emergency to get our attention. We're also there for you when you have routine business or need to make a claim.

  After-hours Policy Services
  Have a policy or billing question, or need to change your policy? You can call our customer service representatives for expert help with questions regarding your policy and billing after normal business hours and on the weekends.

  Convenient Payment Options
  Choose to receive paper bills, pay online2008092711575372 or have premiums deducted automatically from your checking account.

  24-hour Claims Assistance
  Call or go online2008092711575372, any time!

  Fast Appraisals
  We can arrange to have your bike appraised quickly.

  Rewarding You with Savings
  With multiple discounts connected to your bike, you could save money off our already competitive rates.**

  • Multi-bike Discount. Have more than one bike? You’ll get a discount for having two or more.
  • Safety Course Discount. When you complete a Liberty Mutual-approved motorcycle safety course, you'll get a discount.
  • Experienced Rider Discount. If you've had a motorcycle license for three or more years, you'll receive additional savings.

  Liberty Mutual not only provides you with exceptional coverage, we also provide high-quality service to all of our policyholders. A representative is available after hours and on Saturdays to assist you in any way, and claims can be reported 24 hours a day, seven days a week.
  
  *"New" motorcycles are less than one year old, have fewer than 15,000 miles and have had no previous owner. Benefit applies to a total loss covered by collision or comprehensive coverage less applicable deductible. This program does not apply to leased vehicles and it is not available in all states.
  
  **Multi-bike Discount, Safety Course Discount, Experienced Rider Discount, Accessory Coverage and Towing and Labor Coverage not available in all states. Ask a Liberty Mutual representative for details. The descriptions of coverages and features are necessarily brief and are subject to the provisions, limitations, and exclusions that can only be expressed in the policy and related endorsements.

Types of insurance

Indemnification
Main article: Indemnity
The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts;
an "indemnity" policy and
a "pay on behalf" or "on behalf of" policy.
The difference is significant on paper, but rarely material in practice.
An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000)Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured (the homeowner) would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language
An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'. Generally, an insurance contract includes, at a minimum, the following elements: the parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy.
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims—in theory for a relatively few claimants—and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses (i.e., reserves), the remaining margin is an insurer's profit.

Insurers' business model
[edit] Underwriting and investing
The business model can be reduced to a simple equation: Profit = earned premium + investment income - incurred loss - underwriting expenses.
Insurers make money in two ways:
Through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks;
By investing the premiums they collect from insured parties.
The most complicated aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. Of course, from the insurer's perspective, some policies are "winners" (i.e., the insurer pays out less in claims and expenses than it receives in premiums and investment income) and some are "losers" (i.e., the insurer pays out more in claims and expenses than it receives in premiums and investment income); insurance companies essentially use actuarial science to attempt to underwrite enough "winning" policies to pay out on the "losers" while still maintaining profitability.
An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss.
Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out. The Association of British Insurers (gathering 400 insurance companies and 94% of UK insurance services) has almost 20% of the investments in the London Stock Exchange.[6]
In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycleProperty and casualty insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the United States, due to unpredictable natural catastrophes, have exacerbated this trend.
Claims
Claims and loss handling is the materialized utility of insurance; it is the actual "product" paid for, though one hopes it will never need to be used. Claims may be filed by insureds directly with the insurer or through brokers or agents. The insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form such as those produced by ACORD.
Insurance company claim departments employ a large number of claims adjusters supported by a staff of records management and data entry clerks. Incoming claims are classified based on severity and are assigned to adjusters whose settlement authority varies with their knowledge and experience. The adjuster undertakes a thorough investigation of each claim, usually in close cooperation with the insured, determines its reasonable monetary value, and authorizes payment. Adjusting liability insurance claims is particularly difficult because there is a third party involved (the plaintiff who is suing the insured) who is under no contractual obligation to cooperate with the insurer and in fact may regard the insurer as a deep pocket. The adjuster must obtain legal counsel for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation that may take years to complete, and appear in person or over the telephone with settlement authority at a mandatory settlement conference when requested by the judge.
In managing the claims handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act, fraudulent insurance practices are a major business risk that must be managed and overcome. Disputes between insurers and insureds over the validity of claims or claims handling practices occasionally escalate into litigation; see insurance bad faith.

Principal of insurance

THIS IS FOR YOU

FROM : INSURANCE

Principles of insurance

Commercially insurable risks typically share seven common characteristics.
A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, proportionally the actual results are increasingly likely to become close to expected proportions. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

insurance n tips

1 Home owners insurance discount ;
It help to Combine and save the people poperty. we can get discount on auto insurance policy which to insure frombig loss.
2 Multi-car insurance discount
Insure more than one vehicle is known as multi-car insurance and can save up to 20 percent.

3 Accident-free car insurance discount
we can Save up to 10 percent .
4 Good Student car insurance discount
can Get up to a 15 percent discount on your auto insurance when we are teen to earns .
5 Life and car insurance discount
Save up to 5% on auto insurance policy while purchase life insurance .
6 Long-term policyholder car insurance discount
7 Affinity car insurance discount
8 Anti-theft car insurance discount
when we install an anti-theft device in your vehicle. Savings vary based on the device installed and the state where park your vehicle.
9 Passive occupant restraint car insurance discount
Save when you insure a vehicle with full front-seat airbags or restraint devices that work automatically when your door closes.
10 Accident prevention car insurance discount
11 Farm Bureau Member Discount

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Term Life Insurance
What Does Term Life Insurance Mean?A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death).

Investopedia explains Term Life InsuranceThese types of policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.
Death Benefit
What Does Death Benefit Mean?The amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away. Also known as "survivor benefit".

What the California Low Cost Automobile Insurance Program (CLCA)?
The primary goal of the California Low Cost Automobile Insurance Program (CLCA) is to provide an affordable auto insurance option to low-income good drivers.
California Law requires that all drivers be insured. However, too many low-income drivers remain uninsured because the costs of standard insurance premiums are beyond their financial reach. The California Low Cost Automobile Insurance Program provides affordable liability only auto insurance that meets the state's financial responsibility laws.

How do I apply for a CLCA policy?
In order to buy this insurance you must meet certain rules. Take this simple questionnaire test to find out if you may qualify. You will be asked a few yes/no questions to determine if you are eligible. If you qualify, you will be provided a list of certified producers in your local area. Simply enter your zip code and the list will appear.
You will need to contact a producer in order to apply for the automobile liability insurance policy. They will help you complete an application for insurance, plus collect the required deposit and documents needed for this program and get you started. Now, let's find out Do I qualify?

new arrival

new arrival

He may be pining for Kristen Stewart, but Robert Pattinson is not exactly resting on his laurels these days as he films Remember Me in New York.
In fact, he doesn't even have to limit himself to one girl!
Amid reports that Pattinson and Twilight co-star Kristen Stewart are pained to be apart as they film movies on opposite ends of the country, he was seen with a pair of hotties at the Bowery Hotel Wednesday in NYC.
"One of the two women Rob was with was definitely Camilla Belle, one of his a source said. "The other I only caught a quick glance of - it could have been Emilie de Ravin but I can't swear to it. She was blond and beautiful

Your house is your home - and you need to protect it. eHome can provide you with direct insurance for both buildings and contents to keep your household and garden insured against damage and loss.

We are the first online home insurance solution that lets you manage either your building insurance policy, contents insurance policy or both buildings and contents policy in your own time - 24 hours a day, 7 days a week. Why bother with call centres and automated phone lines? Our unique system saves you time while reducing the cost of your home insurance quote.

Whether you own or rent your property, whether it's a terraced, semi, bungalow, detached or a townhouse, eHome Insurance can provide competitive home insurance quotes online.

We also provide quotes for car insurance, van insurance and bike insurance
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