Motorcycle Insurance Jargons Explained

by Administrator 7. September 2015 12:45

If you are planning to buy motorcycle insurance, you might have come across several terminologies that seem difficult to understand. However, having a proper knowledge of these terms is important to ensure that you are getting the best deal. Here are some of the common motorcycle insurance jargons along with their simplified explanation:

  • Agreed value: It is the amount that insurance company sanctions to insure your bike. The amount is based on the value of your motorcycle depending upon its make and model.
  • Sum insured: It refers to the maximum amount that the insurance company will pay in case of the total loss. The sum insured is explicitly mentioned in the policy schedule. You must review the sum assured at each renewal of the policy.
  • NCB or NCD: These abbreviations refer to No Claim Bonus or No Claim Discount. Their amount varies depending upon the period you had motorcycle insurance without making a claim.
  • Endorsement: It refers to the changes in the terms of the policy.
  • IPT: It is the Insurance Premium Tax that is levied by the government on all the insurance premiums.
  • Policy Schedule: It mentions the details of the coverage offered under the insurance policy.
  • Certificate: It is the document of proof that you have bought the motorcycle insurance. You may need to show the certificate to police when required.
  • Excess: In case you need to make a claim, you may have to pay a small amount initially, which is known as excess. Paying excess is compulsory and you can choose how much you are willing to pay. The more you pay, the lesser will be the premium.
  • Exclusion: A provision that explains what circumstances are not covered under the policy.
  • Period of cover: The time period for which your bike is insured.
  • Premium: The premium defines the monthly or annual amount that you pay for your motorcycle insurance. This depends upon the type of insurance you buy and the potential risk of damages or loss to your bike.
  • Protected bonus: This is the extra amount paid to protect the no claim bonus so that if you make a claim, you are still able to keep your no claim bonus.
  • Renewal: Renewal is the offer by the insurance company that allows you to renew the policy for another term. The renewal notice mentions all the details of the premium, amount of cover, excess value, agreed value, and so on.

We, at Shawn Camp Insurance Agency, Inc., can help you choose the most suitable motorcycle insurance in Killeen, TX. For more information, you can call us at (254) 526 – 0535.

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