How does telematics influence insurance pricing?

Telematics collects real-time driving behavior data through GPS and sensors in vehicles. Insurers use this data to offer usage-based insurance (UBI) policies, rewarding safe drivers with lower premiums. Risky drivers may face higher rates or receive feedback on improving their driving habits to reduce future claims.

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What is an insurance deductible?

An insurance deductible is the amount you must pay out-of-pocket before your insurance provider covers the remaining costs of a claim. It applies to health, auto, home, and other insurance policies.

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Will earthquake insurance cover damage to my garage or outbuildings?

Yes, earthquake insurance can cover garages, sheds, and other outbuildings, but the specific coverage may depend on the terms of your policy.

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What is the difference between third-party and comprehensive insurance?

Third-party insurance covers only damages or injuries caused to others, while comprehensive insurance includes coverage for the insured’s own vehicle and injuries, along with third-party liabilities. Comprehensive insurance offers broader protection but is more expensive.

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What is facultative reinsurance?

Facultative reinsurance is a type of reinsurance where an insurer cedes (transfers) a specific individual risk or policy to a reinsurer, who evaluates and decides whether to accept or reject it.

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Are there any age restrictions for on-demand insurance?

Some on-demand insurance policies may have age restrictions, particularly for travel or health insurance, with specific age limits for eligibility based on the type of coverage.

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What is the legal basis for insurable interest?

Insurable interest is based on legal and financial relationships where the policyholder would suffer a measurable loss in case of damage, injury, or death. Laws in most jurisdictions require insurable interest to prevent fraudulent claims and ensure ethical insurance practices.

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Will travel insurance cover evacuation for minor injuries?

No, emergency evacuation is typically covered only if the injury or illness is serious enough that local medical facilities cannot provide adequate treatment.

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