Vehicle Insurance Terminology
You always want to experience beautiful and positive events in your life. However, you often face various risks due to reasons within or beyond your control. Being defenseless against these events is the most helpless situation. Besides emotional distress, your budget is also affected. For this reason, you absolutely need legal protection. This protection is provided by insurance.
Although it is now easy to get insurance online, there are points to consider. First and foremost is knowing the meanings of insurance terms. Carefully reviewing your policy is extremely necessary to avoid being in a difficult situation in case of risk. Therefore, it is impossible to complete this review correctly without knowing the meanings of the terms written in your policy.
Insurance
Insurance is a system that provides financial coverage for damages resulting from the occurrence of risks.
Mandatory Insurance
These are insurances that are mandatory by law, and failure to comply results in penalties. For example, traffic insurance is mandatory within the borders of Turkey.
Insured
The person who is protected against risks.
Insurer
An institution that provides protection against risks to the insured in exchange for premium payments.
Insurance Policy
A document that outlines the mutual terms between the insured and the insurer.
Premium
The fee paid when receiving material protection services from an insurer against a specific risk.
Additional Premium
Premiums paid for additional coverages that can be added beyond the main coverages included in the policy.
Surcharge
An additional fee requested by the insurer if they deem the premium insufficient for the risk to be covered.
Coverage
The amount of money paid by the insurer to the insured as a result of the occurrence of the risks specified in the policy.
Overinsurance
When the amount covered for the risk stated in the policy is higher than the actual value of the insured.
Underinsurance
When the amount covered for the risk stated in the policy is lower than the actual value of the insured.
Risk
Potential risks that cause damage to the insured and have a measurable monetary value.
Endorsement
This document specifies the changes made during the policy period.
Deductible
This occurs when the insured wishes to pay only a portion of the damage. In this case, the policy price will be lower.
Policy Renewal
Insurance policies generally last for one year. Renewal is the process of extending the contract for another year after this period expires. You can fill out a policy expiration reminder form to receive a reminder when your policy expires.
