What does ceded mean in auto insurance?
ceded coverage is coverage that is not included in the policy that the insurance company initially sells to you. It's coverage that is added after you've purchased your policy. Some drivers may be eligible to purchase ceded coverage when they take a new driver education course or have a clean driving record for a certain period of time. Ceded coverage is essentially a higher level of coverage that you can add on if you want to.
What does ceded mean in a car insurance policy?
Ceded is the term used in the context of vehicle insurance when an insured party gives up control of a claim, or submits it to another party. When one party has coverage under a policy and another party is involved in an accident or other event for which coverage is sought, the insured party may send a demand to the insurer for coverage. However, the insurer may choose to handle the claim itself, or may offer to settle the claim for a lesser amount than what the insured party is claiming.
What does ceded mean in an insurance quote?
What is ceded in an insurance quote refers to the amount of the premium that's actually due. This amount is legally "ceded" from the insurer to the insured. The insured generally is responsible for paying this amount, but it might be reduced if the insured submits proof that the amount was paid before the claim was made, or if the claim is denied.
What does ceded mean in a car insurance quote?
When you apply for vehicle insurance through your state's mandatory insurance provider, you will likely be required to list a few details about your vehicle. This information will then be used to determine your premium. However, some of the information you provide may not be accurate. For example, if you fail to disclose that your car has been damaged before, your insurance company will not be liable for any additional costs related to the car's damage. Because of this, your insurance company will likely inform you that they will
What does ceded mean in an insurance quote sent by email?
When an insurance company sends you a quote via email, it may also include a list of endorsements. Endorsements are legal documents that describe coverage beyond the basic policy terms. If your vehicle is damaged in an accident, you'll want to make sure your vehicle is covered by the ceded policy. That way, you'll have coverage for the cost of any repairs.
