Idaho Select Insurance | Questions To Ask When Buying An Insurance

In particular, here are four questions you'll want to ask about any insurance policy if you're planning about purchasing.

1. What are the premiums?

Insurance companies charge you for buying coverage. The price you pay for your coverage is called the premiums. Premium is an amount paid periodically -- it may be charged monthly which is most common for health and auto insurance -- or annually which is more suited for homeowners insurance. The amount of your premium is determined by many factors, and that includes your deductible, coverage for your risks, and the type of policy you're buying. Typically, the broader your policy, the higher your premiums.

   2. Are there deductibles?

Some types of insurance have deductibles which is a set amount of money you have to pay for covered services or covered losses before your insurer pays out benefits. Some insurance policies will provide some coverage even if you haven't yet met your deductible.

How does it work? An auto insurance deductible is the amount of money you have to pay toward repairs before your insurance take effect. For example, if you're involved with a car accident that causes $1,000 worth of damage to your car and your deductible is $200, you will only have to pay the deductible amount before the insurance of your car cover the rest. But it is always important to find if there are deductibles to determine how much it will cost you, you’ll never know if the deductibles are too high, which it would hard for you to afford, before you can use the services. If this happens, you may ask your agent to try lower deductibles -- although it might result in higher premiums.

   3. What is your maximum coverage limit?

Another important thing is to determine your policy’s limit. Most insurance policies have payout limits. If you purchase life insurance, for example, your policy will pay a set of death benefits but no other than that. For any insurance with maximum coverage limits, you need to know what the limitations are and make sure you have enough coverage for your protection.

   4. What will not be covered by the policy?

Asides from the policy limit, it is also important to ask what are the exemptions from the coverage. Like for example, your auto insurance will not cover the intentional scratching of your car. With this, you’ll be able to determine the coverage restriction and can do a preventive measurement.

In this article, we wanna make sure that you’re buying the policy that is well-suited for your needs. Don’t hesitate to ask your agents about this to make sure you have enough protection for life’s big losses and as an insurance holder is well worth the investment.