All That You Need to Know about Insurance
by Mashum Mollah Insurance Published on: 27 December 2018 Last Updated on: 18 July 2022
Many people are still not much familiar with the term Insurance and how it works. The first thing to know when you are buying any type of insurance is that you understand all the terms and how the insurance is going to work when you will seek a claim.
Insurance is a way of protecting oneself from a financial crisis. It is basically an agreement between two entities where one entity, called the insurer, guarantees to provide compensation to the other entity, called the insured, in case of any financial need. And to be able to gain the guarantee, the insured has to pay a small charge, called a premium. After the agreement has been signed if there is any problem that falls under the terms and conditions of the agreement then the insurer pays the insured claimed money as per the agreement.
To understand this in a better way, think of an insurance company as a third party which takes some money as a premium from all the insured people, and fortunately, most insured people do not use the coverage from health and life insurance and give the money paid by these people as a claim to those insured people who meet any crisis and need money.
Insurance is a smart way to invest money. There are many types of insurance provided by the Insurance Company:
- Life insurance
- Health insurance
- Auto or Car insurance
- Home insurance
Above are the main four types of insurance which provide the insured with the claim in case of an accident or death, disease or injury, collision or accident, fire or flood or rain respectively. There are different policies related to different types of insurance provided by insurance companies. You can work around the market to get the best insurance company that can avail you of the best plans at the lowest possible premiums. There are many options available for you from which you can choose according to your needs and the insurance company & its agents help you find the right set of insurance plans that best suit your future goals. Buy insurance that best suits your financial scheme, your insurance goals, and future plans to get the best out of any insurance you are buying.
If you are looking to buy insurance for let’s say your vehicle or car then you need to look for auto insurance which can provide you with the following services:
Coverage for personal belongings:
This covers the loss or damage of your personal belongings in case of an accident, theft, or fire when they were in your car.
Car rescue cover:
In case your car meets an accident and immobilizes at the scene then the insurance company pays for the cost of moving your vehicle from there.
Courtesy car:
In case of an accident if your car needs to be repaired then you are provided with an alternative car for the period until you get your car back.
Repairs guaranteed:
Insurer guarantees to pay for any repair work done on your car from the repairers approved by the insurance company.
New Car Replacement:
In case your car is stolen and not recovered or damaged in an accident, fire, or theft then your insurer must get you a brand new car of the same make and model. Although there are terms and conditions for such scenarios still it is a very important point that the insured must note for in the policy while buying insurance.
Accident transport:
In case of involvement of your car in an accident if your car immobilizes then the insurance company must provide transport for you and your fellow passengers.
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