Insurance Quote 101- Deciphering Insurance-Ese
by William Gates, 2010-05-14
When you apply for an insurance quote, you’re likely prepared for just about anything, and you know all of the different little details that you need to look for in your search for the best insurance, right? Okay, so maybe you’re not an insurance guru. That’s okay, though. Here at InsuranceQuote.com, we have compiled a complete guide to deciphering those insurance quotes so that you can better understand what you’re buying. Here is a glance at some of the words and language that you’ll see, as well as an English translation of what exactly each one means:Premium: This is the cost that you pay for the insurance. You will either pay it yearly, semi-annually (two times a year), quarterly (four times a year) or monthly. Either way, where it says ‘premium’ on your policy is the price tag.
Limit: This is how much coverage you can have. You might only need $30,000 for your auto accident, for example, but your limit is up to $50,000 per year. That means you can be covered until you reach that threshold, and then you’re on your own.
Coverage: This is the insurance that you are buying. The coverage is the protection that you get in exchange for paying your premiums. Every type of insurance has different coverage, so you’ll have to focus in on what you’re buying specifically to learn more.
Rider: This is an attachment to another policy or an addition to your policy that includes special circumstances or insurance elements.
Exclusions/Exceptions: BEWARE! These are things that aren’t covered by insurance. Often, they’ll be worded differently so that less people pay attention because they don’t understand it. This might sound mean and tricky, but it’s the truth.
If you need more help than this, you should take the time to talk to an insurance agent who can sit down and explain your exact insurance quotes to you. By understanding what you’re buying you will be a more informed consumer and more readily able to make good decisions about your insurance needs, no matter how big or small they might be. It doesn’t matter whether you’re buying life, health, home, or auto insurance because they all use these terms, along with their own terms, and can be rather confusing if you aren’t prepared. If you want to learn more, check out other articles and insurance resources here at InsuranceQuote.com. If you’re ready to get a quote, apply now for the type of insurance that you need and have multiple quotes in no time at all.