Choosing a casualty insurance company is a responsible decision, the adoption of which requires specific skills and knowledge. Have you ever crashed a car, lost property, or ended up in a hospital in an exotic country? A casualty insurance company can help solve all these problems. The main criterion for choosing an insurance company is its reliability.
However, focus not only on customer reviews because they are not always correct. Reliability ratings may not give a complete picture of the stability of insurance companies, but they should still guide you.
All companies in the rating can fall into one of five categories: class A (high level of reliability), class B (acceptable or satisfactory level), class C (low level), class D (bankruptcy) and class E (license revocation). Of course, it is better to focus on those casualty insurance companies that belong to class A.
- 1 Steps For Choosing a Reliable Commercial Casualty Insurance Company
- 2 How to choose a casualty insurance policy?
- 2.1 1. Determine the reasons for the acquisition of the policy
- 2.2 2. Select casualty car insurance risks and examine exclusions from coverage.
- 2.3 3. Determine the casualty insurance amounts
- 2.4 4. Analyze the conditions and amounts of payment
- 2.5 5. Determine the casualty insurance period
- 2.6 6. Calculate the cost of the policy
Steps For Choosing a Reliable Commercial Casualty Insurance Company
Step 1. Find out if the company has enough money
Do not be too lazy to evaluate the financial stability of a casualty insurance company. This is done easier than it might seem at first glance – even if you do not have an economic education.
The financial stability of the insurer is its ability to fulfill its obligations, regardless of changes in the economic situation. Moreover, if you intend to conclude a contract with the company for an extended period of time, it is important to analyze and predict the most likely development of the company during the term of the contract.
Step 2. Review previous customer reviews
The moment of truth in the relationship of a casualty insurance company with the client is loss settlement and insurance payment. For the sake of this, a person buys an insurance policy.
Listen to the opinions of friends and acquaintances who have dealt with the insurance company of your choice, especially if they have ever received insurance benefits. Together with other assessment methods, the word of mouth method is quite acceptable.
Step 3. Compare the cost of services of different casualty insurance companies
Before you make the final decision, visit the offices of several selected companies. Pay attention to the level of service, to the desire of specialists to answer your questions in detail, even the office itself and the situation in it.
Appreciate those commercial casualty insurance companies that offer good service, where specialists are polite, are ready to meet you, and warn you in advance about payment conditions. Try to find an individual tariff that meets your needs, literally “chew” all the nuances. This increases the likelihood that such increased attention to the client will remain in the event of an insured event.
Step 4. Read the casualty insurance contract to the end
About 90% of people do not read out casualty car insurance contract to the end. It’s one thing that the insurance agent tells you in words, and another thing is written on paper.
When an insured event occurs, you cannot prove what you were convinced of. Take your time and carefully read the insurance rules. By the way, events that are not insured events, as a rule, are not spelled out in the insurance policy.
How to choose a casualty insurance policy?
1. Determine the reasons for the acquisition of the policy
Initially, it is worth deciding on the purpose of acquiring such an agreement. Someone needs the policy to provide protection when applying for a loan, and someone wants to protect themselves and their loved ones from unforeseen expenses associated with an accident or illness.
If the policy is necessary as part of a contractual relationship with the bank, first of all, you need to familiarize yourself with the requirements of the lender.
Casualty insurance can be carried out both within the framework of collective insurance programs, as well as individual ones. The insurer under the collective insurance program is a bank. The client acts as the insured, which is confirmed by the issuance of an insurance policy or certificate of accession to the insurance program. As part of the collective program, insurance is carried out directly at the bank when applying for a loan.
An individual contract is concluded when applying to an accredited insurance company. Insurance conditions are selected, taking into account the state of health of the client, the degree of professional risk, age, and other factors.
There are many programs for clients whose desire to purchase insurance is not related to the bank’s requirement, under which the client can insure both himself and his relatives. There are special insurance programs designed for fans of active sports, for drivers and passengers, etc. Depending on the purpose of insurance, you must choose a set of risks.
2. Select casualty car insurance risks and examine exclusions from coverage.
A standard set of risks includes personal injury, disability, and death from an accident. By accident, insurance companies understand a sudden, unforeseen event that is not dependent on the insured, resulting in harm to life and health.
Like any other insurance contract, a casualty insurance policy contains a number of exceptions that must be carefully studied. For example, insurance companies do not recognize insured events resulting from mental or severe nervous disorders, hypertension, chronic epilepsy. Cases connected with the insured being in a state of alcohol or drug intoxication are not covered standardly.
Exclusions may include risks associated with hazardous professional activities or extreme sports. These exceptions are especially common in collective programs. Dangerous professional activities and extreme sports are factors that increase the degree of risk. If the client needs to purchase a policy specifically for the purpose of protection against them, these risks must be included in terms of the contract.
For customers who have greater financial obligations and wish to choose a wider range of risks for themselves, companies propose to include the risks of disability with the establishment of groups I or II of disability and death due to illness. If you are the only source of income in the family, it is worth considering the possibility of including risks related to temporary disability as a result of an accident in the insurance policy.
When insuring this risk, the client receives financial protection for the period of inability to fulfill his labor duties. Thus, it is possible to compensate for the difference between wages and sick leave payments. The client can also insure the risks of surgical operations or hospitalization as a result of casualty car. Often, insurers offer insurance products with a significant limitation of events, as a result of which injuries are recognized as an insured event. For example, harm to life and health as a result of an accident. When purchasing such policies, you need to clearly understand
3. Determine the casualty insurance amounts
The insurance amount is set separately for each risk. This is the maximum amount within which a refund can be paid. If the casualty car insurance policy is concluded during the execution of the loan agreement, the sum insured must comply with the requirements of the bank and depends on the size of the obligations to the creditor. Also, the insurance amount may be limited at the discretion of the insurance company when insuring pensioners, housewives, and the unemployed. In other cases, the client can set the amount of the sum insured independently.
When establishing the insurance amount, it is necessary to be guided by the rule that the size of the potential reimbursement should cover the costs of treatment as much as possible and provide financial support to the insured family.
4. Analyze the conditions and amounts of payment
The amount of compensation payable in the event of an accident is calculated individually for each risk. The calculation procedure is reflected in casualty insurance rules or annexes to the rules. When assessing the need to include a particular risk in the policy, one should study the number of payments established for each risk.
As a standard, in case of the death of the insured, the insurance payment is 100% of the established insurance amount. When calculating the disability risk-benefit, the insurance benefit depends on the disability group. Most often, for the group I, payment is made at a rate of 100% of the sum insured, with group II – 75%, group III – 50%, but changes are possible, including at the request of the insured.
The risk payment “temporary disability” is made in the amount of a certain percentage (usually 0.2-0.3%) of the insurance amount for each day of disability, but not more than the maximum period (usually from 60 to 100 days). Within this risk, companies often use a temporary deductible (from 10 to 30 days). This period is not taken into account when calculating casualty insurance payments.
For “Trauma” risk, payment is made in accordance with the payment table depending on the nature of the damage. Casualty insurance companies offer several programs with different options for paytables, with different details and the number of reimbursable injuries. The cost of the policy depends on the selected coverage. When choosing a coverage option, you should proceed from the potential amount of compensation for a particular injury, starting from the minimum amount at which you are ready to bear the time costs of collecting documents and interacting with the insurer as part of the loss settlement procedure.
5. Determine the casualty insurance period
The client himself can choose a term of the casualty car insurance, depending on the purpose of acquiring the contract. The client can purchase a policy for one year or multi-year with annual payments. Concluding a long-term policy,
the client receives a number of advantages:
- lack of a re-registration procedure;
- grace period in which the client has not yet paid the insurance premium for the next year, but the insurance cover continues to apply;
- maintaining insurance conditions subject to deterioration of health.
There are also casualty car insurance policies with an insurance period of less than a year, for example, seasonal policies for motorcycle enthusiasts or policies that cover the risk of a tick bite. The policy may apply only to the time the insured fulfills his work duties or for the period of certain activities.
6. Calculate the cost of the policy
For collective programs and “boxed” products, the tariff is fixed and does not depend on the personal data of the insured. The tariff for such products is usually higher, and there are more exceptions to casualty car insurance coverage. When calculating the tariff, age, health status, profession, and lifestyle are taken into account. To accurately calculate the tariff, the client will need to fill out an application form and, in some cases, undergo a medical examination.
When assessing the age of clients who have reached the age of majority, the principle “the older the client, the higher the tariff.” Moreover, insurance for men is always more expensive than women. When assessing the state of health, not only explicit indicators characterizing the health status of the client are taken into account, but also indicators such as body mass index and the presence of serious diseases in close relatives.
The cost of the policy depends on the degree of risk of the profession and lifestyle. When evaluating a lifestyle, a commercial casualty insurance company studies the client’s hobbies, which vehicles he drives, whether he is engaged in dangerous sports, whether there are bad habits that affect his health. It cannot be stated unequivocally that if a client smokes or engages in extreme sports, then the tariff will be higher for him.
Casualty insurance companies individually approach these parameters and may ask you to fill out additional questionnaires or request more information. The parameters specified in the application are essential in determining the degree of risk. Concealment of information when applying for a policy may lead to a denial of insurance payment.
The choice of a casualty insurance company is not different from other types. The insurer has no right to refuse to conclude such an agreement but the insurance company has the right to limit the number of contract parameters or to exclude certain risks from coverage.
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