Insurance: what is a guarantee?

When you buy insurance, the insurance companies offer us guarantees that they will be able to support in the event that the insured is the victim of any loss. You have the information on what it is that a guarantee in this article.

Definition of a guarantee in insurance

In insurance, a guarantee is an obligation that binds the insurance company and the insured individual for the reimbursement or benefit entitled in the contract This obligation is made by the insurer to the insured and/or the victim by a right to compensation. An insurance policy is clearly stated and the guarantees, as well as their exclusion. They give in detail at the start of the contract the event to be covered, the benefits that the insurer commits and their conditions of application.

The costs of the guarantees
The cost of the insurance premium is determined by the number and quality of the guarantees that the insured subscribes to the contract, as well as by the value of the benefits that the insurer commits to for each guarantee. The benefits vary from one insurance company to another, even though they are the same guarantee. In this case, it is important to make a cost comparison with different agencies and finally make a choice.

Mandatory guarantees
There are mandatory guarantees. Every motorist must insure his vehicle with at least a civil liability guarantee. This guarantee covers only the risks that the insured vehicle can cause to a third party or to another vehicle.
Optional guarantees
There are optional guarantees. Like the guarantees of damage to the vehicles, which is counted in the contracts all risks. Among these guarantees, we have the glass breakage, theft, fire or collision guarantees. The insured who does not find satisfaction of protection of the civil responsibility guarantee, can subscribe to more extended guarantees and protect himself to more situations.