With the amount of different insurance firms and insurance policies to choose from, obtaining motor insurance could be a challenging and frustrating exercise for many people! There are many insurance terms and phrases that form part of an insurance contract – I am sure that many people just close their eyes, sign on the dotted line and hope for the best.

It is nonetheless recommended that you have a basic comprehension of motor insurance terms. You can go over the stipulations of the insurance plan with an insurance firm or your broker, or you can browse the web and fully familiarize yourself with the most often used motor insurance terms. I am not suggesting that you need to become the next insurance wizard, but having a basic comprehension of the insurance lingo might turn out quite useful! Let’s have a look at a few terms that begin with the letter “A”:

Act of God: There are particular times when you won’t be able to claim from your insurance. Should you suffer loss or damage because of an event that is beyond human interference, such as a hurricane, tornado or earthquake, this can be seen as an Act of God. Most motor insurance companies provide insurance for these situations, but it is important to keep in mind that it does not automatically form part of all insurance policies. Acts of God are often covered as part of a fully comprehensive insurance policy. This can be different from one company to another and should clearly be stipulated in your insurance contract.

An Actuary: This is the term for an expert person who is responsible for inspecting, assessing and managing statistical information in the insurance industry. An actuary has many essential tasks and is a crucial role player in the success of any insurance company. These specialists need to continually access any insurance tendencies, locally as well as internationally, to ensure that they are delivering products and services at the best premium prices or rates while also keeping track of other business and financial risks.

An Assessor: An assessor shouldn’t be mistaken for an actuary as they perform completely diverse jobs. An assessor is sent out by an insurance company to inspect the specific damage once a claim is received. Not all claims are scrutinized by an assessor, but if an insured is wanting to put in quite a significant claim the insurance provider needs to protect themselves by making certain the claim is reasonable. In many instances people attempt to claim for a new car from their motor insurance, while the car may actually be repaired at a fraction of the price!

Agent: An insurance agent is not an insurance broker. An insurance agent is employed by a specific insurance company while a broker usually works on their own. Many brokers might also offer a wide range of services, from motor insurance to household and life cover, while an insurance agent can only offer the products and services of their specific firms.

Begin with familiarizing yourself with the conditions above – you will soon understand that motor insurance is not as complicated as you once believed!

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