1. What is coverage?
An auto or home insurance policy outlines “coverages,” which are conditions under which the insurance company may pay the policy holder for a loss. There are different types of coverages including liability coverage, comprehensive coverage, property damage coverage, and collision coverage.
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2. What is a premium?
A premium refers to how much the subscriber pays for their insurance policy. Insurance premiums can be billed in a number of ways, but are commonly done on a monthly, semi-annual, or annual basis.
3. What is a deductible?
A deductible is how much the policy holder must pay before the insurance company may make a payment on a loss. Let’s say your annual deductible is $500, and you’re reporting a $1,500 loss, you’ll have to pay $500 before your insurance company makes a payment for the remaining $1,000.
4. What is a rider?
Sometimes referred to as an “endorsement,” a rider is a special provision that attaches to a policy and either restricts or expands what the policy will cover. For example, you may decide to add a watercraft and recreational vehicle endorsement to your homeowner’s policy.
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5. What is a claim?
You’re filing a claim when you notify your insurance company that you think a payment is due to you under the terms of your policy. If your home is burglarized, you might file a claim under your homeowner’s policy to help cover the cost of repairing damages the burglar caused.
6. What are exclusions?
Exclusions are events or losses not covered by your insurance policy. A health insurance policy may exclude optional procedures, such as acupuncture.
It’s important to understand the details of your insurance policies to make certain you have the coverage you need, at a competitive price. If you are have additional questions regarding your insurance policy, or wonder if you could be paying too much, give an expert a call. They can help you find an insurance policy that is not only transparent and easy to understand, but also fits your budget.
Insurance companies may use a lot of complicated language, and it might feel like your signing an ambiguous contract, but it shouldn’t be scary. Talk to your local insurance agent about the coverages available near you. Make sure you understand your coverage limits, and everything your policy covers.
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!