Vehicle insurance renewal how it works

1
Vehicle Insurance
2
Vehicle insurance renewal-How it
Works   Insurance, primarily, operates on several
principles. The reason that insurance is such a
lucrative business is because there are large
numbers of entities susceptible to loss that can
be insured? Insurers seek to cater to members
within a large Class. For example, the class of
people owning vehicles is vast, therefore that is
an ideal class to provide insurance to. The same
goes for health and life insurance.
3
The loss that insurers must cover must also be
accidental, not taking into account the usual
damages one may face while in a certain
situation. Also, this loss must be definite. For
example no health insurance deal would cover the
bills incurred due to a numerous, unexplainable
visits to doctors.
4
To calculate insurance deals, two things must be
quantifiable. These are probability of a loss
and the cost of that loss. While there is no
scientific way of calculating, for example, the
risk of a vehicle getting into an accident, there
are practical methods of coming to conclusions.
The cost of the loss, the amount an insurance
company has to pay back to its customers should
be reasonably and objectively calculated.
5
There are several other methods of loss
protection. One of these is indemnities. An
indemnity entails that the person suffering from
a loss must be willing and able to pay for that
loss themselves and then the company will
reimburse them. The way insurance works is that
an insurance company chooses what sort of
insurance deals to offer. Then, customers wanting
these deals will buy them.
6
They pay an "insurance premium". The insurers,
having taken premiums from many customers will
then do two things. Firstly they will invest some
of this premium in a profitable market giving
good returns. They will keep the rest as a
'reserve' to pay for the losses caused to their
customers. Obviously, this model operates on the
supposition that the number of people suffering
losses is far less than the number paying a
premium and that these losses are far less than
the total profit generated through the collection
of these premiums. Statistics and probability are
employed to determine the likelihood of a claim
being made against a company for their policies.
7
Claims filed by insured are the actual "product"
for which they had paid a premium. Car insurance
reviews have showed that higher premiums are not
necessarily paid to cover a wider variety of
claims, but that in the niche market of luxury
cars, the insurance premium reflects the make and
price of the car itself. As far as renewing
insurance deals is concerned, there is no
definite market that sees the most renewals.
Renewals are based more on customer satisfaction
with a particular company's policy with regard to
the entity being insured. Vehicle insurance
renewal are on the decline, not because of poor
insurance deals, but because car ownership time
is decreasing and new deals have to be made with
each new car bought.
8
Follow Us On
https//www.facebook.com/BajajAllianz
http//www.linkedin.com/company/653474
https//plus.google.com/BajajAllianzGIC/posts
https//twitter.com/BajajAllianz
https//www.youtube.com/user/BajajAllianzGIC
https//instagram.com/bajajallianzgeneral/
9
Click to know more onvehicle insurance

• https//www.bajajallianz.com/Corp/motor-insurance/
  car-insurance.jsp