AUTOMATIC COVERAGE Meaning and
Definition
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Automatic coverage refers to a type of insurance policy that provides protection to an insured party or property without the need for a separate application or additional steps. It is an arrangement where certain risks or circumstances are automatically included in the insurance policy, without the insured having to specifically request or add them. This feature of automatic coverage ensures that the insured is afforded immediate protection and does not suffer from any gaps in coverage.
This concept is commonly seen in various types of insurance, such as auto insurance, property insurance, or health insurance. For example, in auto insurance, if an individual purchases a new vehicle, it may be automatically covered under their existing policy for a certain period, typically 14 or 30 days, without requiring them to immediately inform the insurance company. Similarly, property insurance policies often come with automatic coverage for standard perils such as fire, theft, and natural disasters, making it unnecessary for the insured to separately specify these risks.
Automatic coverage allows the insured to have peace of mind, knowing that they are protected from potential risks or damages even before they formally update their insurance policies. However, it is essential for the insured to review their policy terms and conditions to understand the specific scope and limitations of the automatic coverage provided by their insurer.
Etymology of AUTOMATIC COVERAGE
The term "automatic coverage" does not have a specific etymology as it is a combination of two separate words. "Automatic" is derived from the Greek word "automatos", meaning "self-moving" or "acting on its own". It entered the English language in the 17th century. "Coverage", on the other hand, comes from the Old French word "covrir", meaning "to cover", and has been used in English since the 14th century. The word "automatic" refers to something that operates or functions independently, while "coverage" refers to the extent or scope of protection or insurance provided. When combined, "automatic coverage" refers to insurance or protection that is automatically extended without the need for additional action or application.
