What does bound mean in insurance?

When you take out insurance you often have a policy limit, which is the maximum amount that you will pay for covered claims. If your insurance company receives a claim that is greater than what your policy limit is, your insurance company will cover the remaining amount, up to the policy limit. This is known as the “bound” on your insurance policy. So if your policy limit is $1,000 and you receive a claim for $1,500, your insurance company will cover the

What do bound mean in insurance?

When you insure an item with a limit, that means the maximum amount the insurance company will pay for the item in the case of a loss. For example, if you insure your vehicle at $500,000, the maximum amount that the insurance company will pay for damage to the car is $500,000. If you exceed this amount, you will be responsible for the difference.

What does bound mean in car insurance?

By bound, we mean the maximum amount of money that an insurer will pay for damage to your car. In other words, it's the maximum amount of money that the insurance company will cover once coverage begins. If your car is later totaled, the insurance company will pay the depreciated value of your vehicle. The depreciated value is the amount that your vehicle is worth after you pay the outstanding loan on it and any other costs associated with the car.

What does bound mean in life insurance?

Typically, bound life insurance is a policy that provides a death benefit after your lifetime. However, in some cases, you can purchase guaranteed renewable life insurance as well, which gives you more coverage for a fixed amount for a set period of time.

What does bound mean in automobile insurance?

If you have a standard policy, it will have a monetary limit on the amount your insurance company will pay for damage to your vehicle. If your car is a total loss, your insurer will only pay the actual cash value of the vehicle. The actual cash value is the depreciated value of the car at the time of the accident. It is the amount you could get by selling the car for salvage.