Posts Tagged Insurance

Understanding How Auto Insurance Companies Determine Premium Rates

Many people do not know how auto insurance premiums are calculated. Insurance companies decide premium rates by considering many factors based on risk. The higher the risk, the more the premium rate.

Generally, insurance companies favor those customers who are likely to be good in mitigating the risks. They charge more for those who are likely to get into an accident or file a claim to get compensation or recover. Many people often get shocked when they find the other person paying more or less with the same amount of coverage. Although it may seem unfair, but the truth is that, these premium rates are determined based on the risk analyzed by the statistical data.

The factors that affect your auto insurance premium rate are:

  • Your vehicle: The cost and type of your vehicle significantly affect your insurance premiums. This is one of the main factors on that your premium depends on. The newer the car, the more expensive is the premium. Every vehicle has some rating by insurance companies based on how risky the vehicle is to insure. There are many factors like year of manufacture, model, safety features- which are considered while determining the rate of the premium.
  • Your age: Based on the statistical data, younger the people are, the more prone to risky driving. Thus, if you are younger, the rate of premium will be higher. People below the age of 25 get expensive premium rates and the people above the age of 25 get lower premium rates. Mostly, we can see people of age between 50 and 65 tend to have the safest driving and hence low premium rates. According to statistical data, women drive more safely than men do.
  • The place you live in or drive: If you are living in a busy and populated area that has more probability of accidents and thefts, then you are likely to pay expensive premiums.
  • Your driving record: Your driving record also plays an important role in your auto insurance premium. If you are a high risk driver with history of accidents, violations, bad driving habits like driving after drinking etc. then you need to pay more for your auto insurance premium.

Understand these factors to ensure that you get a low premium rate for your auto insurance policy as every factor contributes to keep your car insurance premium reasonable.

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How Insurance Claims Software Delivers Business Functionality

Insurance claims software helps simplify the insurance claims process so as to get paid faster for the customer. As an insurance provider, it is your Law firm billing softwareresponsibility to receive, route, track and respond within settlement time, no matter how claim information is submitted.

Claims processing operations must be customer-focused and cost-effective. Insurance claims software enables to access complete claimant information. It helps in increasing efficiency and accuracy of claims processing and enhance superior customer service. It benefits customers to cut down claim processing costs and speed the claims process. With the increase in technology, intelligent work flow, business rules and process management, insurance claims software will handle every small and complex thing easily.

Features of insurance claim software

  • Insurance claim software automates your claims department and helps in processing claims intelligently.
  • Automates claims payment processing for small and low-severity claims.
  • Dynamic data capture with intelligent automated flows.
  • Supports multiple channels of claims entry through emails, fax, and call center.
  • Automates claims routing based on location, skill and type of claim.
  • Detects intelligent fraud, alerts and handles cases.
  • Stores information of all types of claims-relevant data sources and formats. It may include databases, files, images etc.

If your business initiatives call for growth and customer satisfaction, insurance claims software is the best solution for processing your claims. The insurance provider can easily find claims by searching database on against a number of criteria such as, claimants, dates, clients, business involved etc. Simply we can say that, insurance claims software will handle claims process – faster, smarter and better. Read the rest of this entry »

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Umbrella Insurance: How it Secures Policy Holder

Umbrella insurance is an insurance policy which protects the policy holder against the damages and liabilities. This insurance policy secures the policy holders from all the existing insurance policies such as home insurance, property insurance, and liability insurance, etc. The home, auto, property and liability insurance pays for a certain amount of losses. But, if the loss amount exceeds than the stated insurance coverage, the insurance company pays only for the certain limit. Whenever your existing policy is not able to pay the full loss amount then the umbrella insurance can provide full coverage for the loss.

The main purpose of umbrella insurance is, it covers the excess losses when the respective insurance does not cover full loss of property or liability. Umbrella insurance does not just cover you from financial damages but it can save you from the biggest financial losses that cannot be covered by your respective insurance policy. For example: if you get excess loss for your home and your home insurance cannot cover entire loss, as the loss amount exceeds than the stated insurance amount. In these cases, if you have umbrella insurance, then your umbrella insurance covers the remaining loss percentage. If your home insurance cover 60% of loss, then umbrella insurance covers the remaining 40% loss. It means that the umbrella insurance does not cover the direct loss, but it can cover the losses whenever your current insurance policy is not able to cover.

Umbrella insurance provides benefits for individuals and businesses. It can cover the excess of property, auto, liability and lawsuits losses.

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Few Tips to Save Money on Auto Insurance

Auto insurance is legal requirement for all drivers in many states. Every car holder needs car insurance t protect their car from losses, such as accident, theft, fire, and natural disaster losses. Many people take auto insurance, but no one wants to pay more amount to insure their vehicle. Whether you are shopping for auto insurance for the first time, or if you already have an auto insurance policy, consider the tips included here, as they could save money on your auto insurance.

  1. If you have never purchased auto insurance before, do some research, before you sign any kind of policy. Be sure to understand the coverage, terms and conditions. Do research to know the basics of auto insurance. Research can be made through an agent in person, on telephone, or even online. There are plenty of websites available to know the information such as, premiums, ex premiums, deductibles.
  2. Know about the discounts on auto insurance. Check out for maximum discounts.
  3. Rise your deductibles. Your deductible is the amount of money you have to pay towards a claim before your insurer pays. By rising your deductibles, you can reduce your premium costs to minimum extent.
  4. Choose the insurance coverage that you need. If you choose unnecessary coverages on your insurance policy, then you have to pay more. So choose the coverage limit that is necessary for you.
  5. Try to keep your driving record clean. If you are a smart driver, that means you are not likely do accidents. Then you can get lower premium rates.

By following the above tips you can save money on auto insurance.

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Know About General Insurance

General insurance is an insurance which include many types of insurances. When an uncertain event occurs then general insurance will pay. People face many problems in daily life because of uncertainty in life. So this made every one to have the insurance policy compulsory. This insurance does include life insurance. It is used as an umbrella term.

Types: Property insurance, health insurance, liability insurance, these are common types of general insurance.

Size: One need to take each type of general insurance separately. Sometimes different insurance options are provided by some insurance companies. Generally dental, health insurances are often purchased from one company by people.

Who needs it: Private individuals, businesses and government agencies purchase the general insurance coverage. This general insurance package is purchased by the businesses for employees. Small businesses and corporations also purchase this general insurance to protect their capital, tools and machinery in order to protect from some dangers like fire, theft and etc.

Some free general insurance plans and discounts are provided by some government aided programs to people who require them.

Benefits: General insurance can be purchased by individuals in order to protect themselves from any loss which can be arising from unexpected event. That means it provides financial assistance in case of any loss during the policy period. Policy holder can get piece of mind, by reducing the burden or tension. This policy acts like a guardian.

The above information is about general insurance policy, which include multiple insurance coverage.

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What is Difference Between Public Liability Insurance and Professional Indemnity Insurance

People get confused about public-liability insurance and professional indemnity insurance as they both protect against negligence actions, but these two type of insurances are different policies.

Public-liability insurance is designed to provide protection to your business when a business is responsible for things like any damage to the third party or their property or physical loss. So it protects the business and business owner from claims which are made by third parties, when they hurt themselves on the business premises due to business owner’s negligence.

Professional indemnity insurance is an insurance which provides coverage for professionals like doctors, lawyers. If any fault or financial loss occurs which results in any errors and omissions in advice or any professional negligence, then it may lead to claims, so all these legal costs of charges are covered by professional indemnity insurance.

The Business, where the customers must come onto the premises to engage the business services, then it is necessary for such businesses to take this type of insurance policy. The purpose of this insurance is to protect insured against any injury to the customer which may happen on business premises by the use of services of the businesses. A wide range of costs are covered by public-liability insurance. Injured’s medical costs, lost wages, any property damage, which occur due to negligence of the policy holders, are covered by this insurance.

So, the above information is about the difference between the public-liability insurance and professional indemnity insurance. If you read this you can find out the difference between these two policies.

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Tips to Get Public Liability Insurance Quotes

It is necessary to have the public-liability insurance, if you have the business. Public-liability insurance will protect the business from claims which are made against the business. Getting quotes can be difficult. There are some tips to get quotes for public-liability insurance, such as:

To be sure: You should prepare right things, in order to get right public liability insurance. You have to know your personal details, your business details, and your claims history to give an overview of what you can get based on what you did in past and present. It is like insurance investigation. No dishonest means no difficulty. So insurance comes not in the form of certificates, it comes in the form of planning and preparation for it.

Make known business: You must provide correct and necessary details in order to get correct quote. You can tell them about your idea, benefits, risks and hazards of your business. You should be honest and explain them in proper way.

Give the right number: You should give the right number of employees which you have, to get proper quote. Declare the full time workers and part time workers and whose work is manual and clerical in nature, because job of your people is matter to get right quote.

Repeat the history: If you get the wrong details, wrong response, then look at company records and review them. Pay great attention to achieve correctly.

Detail the risk: You should be able to detail the dangers in your business, after you introduce your company and the nature of the work and service.

These are the tips to get quote for public-liability insurance for your business. These tips may help you to get right quote.

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Insurance Companies- Nicotine Test

Generally it used to said that, in an average, the life of smoker is nearly 10 years less than a non-smoker. Later it has been proven by clinical researches that smoking can cause many diseases like heart diseases, lung cancer and etc. so automatically reduction in life span.

That is why insurance companies conduct the nicotine test and persons who are considered as the smokers in test, then insurers collect higher premiums from them. Actually insurance companies conduct nicotine test, in order to know whether claims, which are made in the application form are correct. Nicotine test is the part of the medical screening, because that helps the insurer to finalize the premium to charge. Generally the premium of the non smoker for life insurance and health insurance can be the lower than premium of smoker. So the smoker need to pay higher premiums than the non smokers.

Nicotine test can be conducted by using different samples like blood, urine, or saliva. Detecting the nicotine can take longer time in hair drug test. Hair test to find out the nicotine is expensive one. So it can not be feasible for testing all those who apply for life insurance plan and health insurance plan.

Most of the times urine test is conducted to find out whether the person is smoker or not. Essentially the level of the nicotine can be determined by the cotinine test.

If you want to take the insurance plan, then give away the smoking habit in order to reduce the premium, charged by insurance companies.

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Who Needs Errors and Omissions Insurance

If a company or individual is responsible to offer service or advice or financial assistance, then there is a chance of risk of lawsuits. These law suits can be imposed by any one who received physical harm or financial, personal or property loss because of business professional’s mistakes.

Then individuals or companies are protected by errors and omissions insurance from claims which are caused by negligence or mistakes. Lawyers, accountants, architects or engineers, doctors may need this insurance policy. Other professionals also need this insurance, their jurisdictions decide the need of this insurance.

This insurance is compulsory for some professions in some countries. This type of insurance is called as malpractice insurance in medical field. All medical facilities and professionals are required by this insurance to carry the malpractice coverage through out the world. Health care workers are provided protection by this insurance policy by providing the legal assistance and claim coverage. Financial advisers, mortgage intermediaries, and insurance brokers require professional indemnity in UK. Requirement of the insurance changes according to states in United States. International policies are offered by some insurance companies to some Multinational companies because they organize the business in different regions or places. Errors and omissions claims are not covered by product or business liability insurance, so one requires a separate policy. There are different deductible amounts, they are agreed in advance. Protection of professionals are also included by this insurance coverage from claims. Attorney will be provide court costs which are associated with the suit are paid by insurance company if a suit is filed on the policyholder.

The important thing is deliberate criminal or dishonest acts are not covered by errors and omissions insurance policy. You can choose this insurance policy according to your requirements.

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Types of Small Business Liability Insurance

Business liability insurance provides protection for you from lawsuits which result by bodily injury on your business premises because of negligence or wrong doing by yourself or an employee of your business. You and your business are protected by business liability insurance from financial risk. Five types of liability insurances are there, such as:

General liability insurance: This is one type of business liability insurance, coverage for property or injury which result by your negligence or your employees’ wrong doing. Generally, it seems to be as complete business insurance package.

Occurrence policy: The claims are covered by this occurrence policy at a later date. The duration can be months or years after the occurrence of incident.

Professional liability insurance: There are many professionals in an organization, so it is very useful to a business to protect from different claims which are caused by errors and omissions which are carried by professionals like accountants, contractors, attorneys. Professional is a broad terms that can be from plumber to the surgeon.

Product small business liability: If any damage or accident occurs because of your business product then it provides coverage for your business. The coverage of this insurance depends on the type of product you manufacture.

Business liability against employee action: This was designed recently to protect the employers from different action taken by employees in different situations.

Companies basic liability needs are met by most of the small business liability insurance. Slander, libel and infringement or intellectual property are also covered by some general insurance policies. So, you should read fine print thoroughly to understand about coverage of insurance policy for your business.

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