Motor insurance is as much part of our daily lives as eating and breathing. The physical conditions our roads are in together with the increasing amount of traffic volume and the amount of careless drivers on the streets, make driving without having car insurance nothing less than irresponsible!

In order to obtain vehicle insurance quotations from an insurance company, there are a number of phrases and terms that you must understand. This will make sure that you get the best product for your needs and requirements, and secondly that you do not fall for clever sales talk and end up spending a lot more than you originally anticipated.

Vehicle insurance is classified as general insurance. Basically any insurance policy that isn’t a long-term policy is classified as general insurance. When it comes to general insurance or short-term insurance, your insurance provider will use the word “gross” often. Don’t despair, they are not referring to something negative, gross in insurance terms can be used as follows:

Gross negligence happens when you try to claim from your insurance following an accident that you caused, and it can be proved that you were driving recklessly or intoxicated by alcohol or drugs. Your behavior is not only reckless, but also against the law in many cases and therefore your insurance company has the full right to refuse to pay out a single cent.

Gross claim amounts are the amount that an insurance carrier will have to pay before any credits have been provided for. These credits can be by means of subrogation or repairs.

Insurance carriers will also have to proclaim their gross premium income when their financial year comes to an end. This term refers to the money that the insurance company has received from the total number of contracts they have on their books, before re-insurance cost has been deducted.

Your insurance company might also inform you of that they are issuing you with a reasonable estimation or insurance quotation. This basically means that they are estimating what your monthly insurance premium is going to be. An accurate insurance quote can only be given once you’ve supplied the insurance company with the following information: Your age, gender and details of the car, the car value, security measures and even the address where the car will be kept at night. All these details must be verified before the insurance cover can be put into place.

Should you hear the phrase rider in car insurance lingo, the insurance company is not talking about the driver of the car, but to a change to one or more aspects of the policy.

Obtaining insurance can be quite a daunting task. For that reason it’s important to familiarize yourself with the terms and phrases used by insurance companies. If you’re not totally certain what you are being offered, don’t be afraid to get a second and even a 3rd opinion. Insurance policies are one aspect of our daily lives where we should not take any shortcuts!

For more information on insurance company, go to http://www.afi.co.za