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Auto Insurance Terms: What Does Additional Insured Mean? – MotorBiscuit

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Understanding insurance terms can help you get the best out of your car insurance. Most terminologies used in insurance are confusing and prevent car owners from understanding their policies. This may limit those who buy car insurance from taking full advantage of its coverage.
To help you understand your auto insurance, Access Auto Insurance has explained the following 10 must-know insurance terms. 
Investopedia defines additional insured as a status associated with general liability insurance policies where a group or individual not named in the policy is included in the coverage. It protects the insured people or individuals under the policyholder’s insurance, and they can even file a claim under it when sued. It usually involves co-vehicle owners, a leaseholder, or someone driving vehicles owned by another person. 
The groups or individuals added to a policy are additional insured and added through an amendment known as an endorsement. According to The Balance, once a policyholder includes someone through additional insured, everyone listed through the coverage can seek compensation from the insurer. Additional insured individuals or groups are also notified of vehicle and insurance coverage changes.
Please note that insurance companies consider the risk associated with additional insurance minimal. Therefore, the cost of the additional insured is usually low compared to the cost of your premium. 
RELATED: Will Your Insurance Cover an Accident if Someone Else Is Driving the Car?


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