Acceptance
As the owner of a car, when you apply for car insurance you are requesting the insurance company to take over the responsibility to cover you for the various risks that your car is subjected to. There are various risks car insurers have to take into account—theft, accident damage, fire, hijacking, malicious damage and many more. Financially you decide that you cannot carry the risk yourself and decide to take out car insurance to protect you against the risk. The insurance company, on the other hand, will only accept to insure your car should you meet certain requirements.
These requirements can pertain to the car itself, the value, make, model, age, security systems or lack thereof. The insurance company will also investigate if you are a good risk to take on by checking your previous claims record and even your credit record. They will add certain exclusions and also have stipulations which you need to abide by. You will also need to pay a monthly premium for the insurance cover as set by the insurer.
All these requirements, exclusions, cover and premiums will be combined in a written offer of insurance. Acceptance in car insurance refers to the legal term when you absolutely and without qualification agree to the terms of the offer of insurance as made by the insurer. A contract consists of an offer and acceptance. Your acceptance will make the policy a legal contract. There is also acceptance on the part of the insurer who accepts to insure you against the risks as stipulated in the policy.