Auto insurance is based on risk and loss. Auto insurance is needed to financially protect yourself, others and the car if the car gets damaged when met with an accident. Motor Insurance is a combination of two possible words i.e. motor+ insurance. Insurance is a contract which pays the compensation in certain possible event like death, fire, theft, motor accident etc.
Insurance includes risks and uncertainty which are incidental to life. A human being may meet with an uncertain death. If there is any uncertainty, then the risk will be included with insecurity. Insurance is to provide against risk and insecurity. There are many cheap auto insurance college station that provide best policy to the assured and insured person. The important principle of insurance is pooling the risks, which is thus a co-operative devise which spread the loss caused by the risk.
A contract of insurance is a contract in which a person is considered of a sum of money, which undertakes to make loss of other by mentioning a specific risk like fire. The person who undertakes the risk is known as the insurer, assuror and underwriter. The person who bears the loss and made him good is known as the insured or assured.
The instrument in which the contract of insurance is included is called policy. Policy is not a contract; it is the evidence of contract. Insurance is termed as a contract which is governed by the principles of law as compared to other contracts. Insurance is a process which comes under the existence of “offer” and “acceptance”.
Following are the kinds of Insurance:
- Life Insurance: In such type of cases there is a certain amount which is fixed and which is payable at the time of death of the assured person or at the time of expiry of the policy.
- Fire Insurance: It is that type of insurance which covers the losses which is caused by fire.
- Marine Insurance: This type of insurance covers the loss in the incidental to marine adventure.
- Personal Accident Insurance: in such insurance, the amount which is payable is a compensation for personal injury which is caused to the assured person.
Following are the nature of contract in terms of Insurance:
- Offer and acceptance
- Intention to create legal relationship
- Lawful consideration
- Free and genuine consent
- Legal formalities
- Competency of the party
You can easily find Cheap Auto Insurance College Station online by comparing the policies with many companies.