Is Auto Insurance A Contract?
12689 POINTSview profileTed RatliffOwner, SFS Associates,Most insurance policies, including auto insurance, are based on a Unilateral Contract. As long as you continue to pay the premium, the company is contractually obligated to pay any claims according to the contract. Either party has the right to terminate the contract in the case of auto or home or other property and casualty coverage. The policy holder may do so at any time simply by not paying the premium. Usually the insurance company must wait until the anniversary date or renewal date of the policy. Life insurance may not be terminated by the insurance company as long as premiums are paid unless there is evidence of fraud and misrepresentation.Answered on July 18, 2013flag this answer
14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482Insurance policies are by nature contracts. They are written documents executing an agreement between two parties, namely the insurance company and the insured. The insurance company agrees to provide the coverage the insured chooses following the specific terms and conditions of that policy. The insured agrees to pay the premium that is offered by the insurance company in exchange for that protection. The policy contract can of course be terminated under certain circumstances by either party.Answered on July 8, 2014flag this answer
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