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Car Insurance Policy

In the insurance world, the Car insurance policy is a legally binding contract that is drawn up to state the regulations between the policyholder, also known as the client, and the insurer, or insurance company.  Insurance policies are designed differently to other contracts as there are many other features that must be included to meet particular needs in the insurance policy that are not required or included in other types of contacts.

During the insurance procedure, the premium, which is a designated amount of money according to the insurance policy, is paid in exchange for the agreement of the insurance company to pay for the stated kinds of loss and damage as per the insurance policy.  An insurance policy, and its agreements, only pertain to events that are uncertain, either when the events happen or if the events will happen in general.

An insurance policy is usually said to be a contact of adhesion, as the client does not have the ability to change the contract.  They are also aleatory, which means that the amount that is paid as the premium, and the amounts exchanged by the insurance company are unequal in nature and depend on the events that will happen in the future.  Insurance policies are considered as unilateral as well, which means that only the insurer will make legally binding and enforceable assurances in the insurance policy. This entails the commitment of the insurer to pay for the damage if the premiums have been paid and other provisions have been met, however does not entail the commitment of the insured to pay the premiums. Another characteristic of the insurance policy is that it is disclosed in the principle of good faith.  This requires both parties to deal with the insurance policy in good faith and to disclose all information and material facts that are related to the insurance policy.
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One Response to “Car Insurance Policy”

  1. Dawn Peters says:

    car insurance
    Kia Picanto 1.1 2010 R69 990.00
    My daughter will also be driving the car she is 19years old this month


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