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Insurance
Insurance may be defined as a risk management opportunity (in terms of economics and law) used to counter any potential financial threat. It may be further illustrated as an equitable process which enables an entity to transfer a potential loss to another entity just by paying a reasonable fee.
Personal Insurance is an agreement where in one party agrees to compensate for the loss borne by the other party due to any specific issue (eg. a collision, theft, or storm damage). Lease agreements urge you to have both vehicle collision and comprehensive insurance along with liability insurance to evade any form of bodily injury or property destruction.
Thus it acts as a guard from a certain loss over a considerable period of time by way of paying the predetermined premiums in time. In other way round its all about an insurance company reimbursing an individual or an organization for a specific loss for which either of these parties have paid them in terms of premiums. Thus the insurer would need to invest the premiums it has earned in order to achieve a profit margin. The various types of insurance coverage that are widely available may be depicted as automobile, home, health and worker’s compensation. While in a majority of cases it is the insured who is generally reimbursed for the loss, but for a life insurance it is the beneficiary who gets reimbursed when the insured passes away.
An US or Canadian resident who possesses an auto insurance policy covering the rentals as also any full coverage (liability, collision and comprehensive) would certainly need to disclose his entire insurance record prior to the rental , so that his coverage gets verified properly. His insurer would also need to support with a binder from his side. Insurances which do not cover the VAN rentals would not be considered eg. insurance which are offered by the credit card companies.
