Understanding insurance quotes does not need to be a frustrating process. While each insurance company uses its own vocabulary, the basics are the same. Use the tips below to understand what your money is going toward and how to obtain the best deal at the lowest price.
1. Specify the same policy terms across all the insurance companies being compared. You will not be able to determine which policy truly costs the least if they all have different deductibles and coverage limits. In addition, you may want to factor in whether discounts are permanent or for a limited time only.
2. Learn the jargon. The three most common insurance terms are premiums, deductibles, and coverage limits.
Premium
The premium is the amount paid to the insurance company monthly, quarterly, semi-annually, or annually in exchange for coverage. This payment process occurs across the board, whether you are applying for auto insurance, life insurance, health insurance, or homeowners/renters insurance. While some insurers grant a short grace period for missed payments, others cancel insurance policies immediately.
Deductible
When you file an insurance claim, the deductible is the amount you must pay toward the car repairs, medical bills, housing vandalism, etc. before the insurance company pays anything. For instance, if you experience $2000 in vehicle damages and have a $500 deductible, you must pay $500 and then the insurer will pay the remaining $1500. Typically, increasing the deductible reduces the cost of premiums. At the same time, you should never raise the deductible so high so that it becomes unaffordable in the face of an emergency.
Coverage Limits
Each insurance policy details the maximum amount the insurer will pay for certain situations in the event of a claim. For example, your auto insurance policy may cover up to $25,000 in personal injuries, minus your deductible. If you sustain $30,000 in injuries, you will be responsible for paying your deductible plus the $5,000 that went over the coverage limit.
Coverage limits are common in health insurance, in which the insurance company may only pay up to a set amount for certain procedures. The patient must pay any costs over that amount.
In a life insurance scenario, the coverage limit can be equated to the death benefit, which is the amount paid to beneficiaries when the insured individual dies.
The amount of coverage you need is based on any state minimum requirements (for auto insurance), the likelihood of submitting a claim, and the anticipated expense of all claims. For instance, someone insuring an old truck may need minimal vehicle insurance, someone without a spouse or children may need a low level of life insurance, and someone with few valuable possessions may need little renters insurance.
3. Finally, concentrate on the factors that are most important to you. Is poor customer service or a drawn-out claims process worth saving a few dollars? Do you need the option to change your coverage later, such as to add family members? You may not even need to review every line of the insurance quote if your primary needs are met.
Make an informed decision about the best life insurance quotes by visiting Compare Life Insurance Quotes. Also make sure to visit Asteron Life Insurance Company for your life insurance needs.
Article Source: http://EzineArticles.com/?expert=Ajeet_Khurana
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