Going to school can be a frustrating experience. People spend years and years studying the most random things, yet somehow, there aren’t any classes that teach about crucial responsibilities like paying taxes or buying insurance. This situation is actually problematic when you think about the fact that some forms of insurance are mandatory under the law, especially auto coverage. Even the smartest A-Students can get overwhelmed by jargon when the time comes to read through insurance policies and select the right coverage. If you ever find yourself face-to-face with this struggle, don’t give up and suffer in silence. Luckily there are plenty of informational resources which can help you navigate your way through the mysteries of insurance coverage. All it takes is a little focus and research. Here are some answers to five basic insurance questions that all new drivers have:
1. What is an Insurance Claim?
An insurance claim is a request made to an insurance company asking the company to pay for damages caused during an accident. Filing an insurance claim is the first step a person takes in order to activate the services or benefits promised in an insurance policy.
2. What is a Deductible?
A deductible is a fixed amount of cash which people who purchase insurance have to pay out-of-pocket whenever they’ve suffered any damages, or when they’re financially responsible for certain damages. Deductibles represent a fraction of the total cost of damages incurred during an accident.! Insurance companies pay the other portion of this fraction.
3. What is an Insurance Broker?
An insurance broker is a licensed middleman who is authorized to help average consumers find policies which are appropriate to say consumers’ individual circumstances. Brokers help each insurance buyer figure out their risk profile, and then find a reasonable policy which matches this profile.
4. What is Liability Coverage?
Liability coverage is a type of insurance which helps to pay for any injuries or property damage that you may be responsible for after an accident. Liability coverage is such an important protection that it is required by law in multiple states including California.
5. What is an Insurance Premium?
An insurance premium is the total amount you pay in order to buy an auto insurance policy. The cost of an insurance premium is decided by each individual’s risk profile. If you are a risky person to insure, the premium becomes expensive. If it’s less of a risk to insure you, the premium becomes cheap.
Buying insurance shouldn’t make you feel intimidated. It should make you feel safe. That’s why it’s important to educate yourself as much as possible about the options available to you. Long before you ever pick up the phone to ask about rates or quotes, do a lot of window-shopping online, and then do some more. Every time you see a term or explanation yo! u don’t understand, look it up and figure out what it means for yourself. In no time, you’ll start to feel comfortable about seeing technical language in policies. For more information, visit any of our offices or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you find the best protection. We got you covered!