When shopping out your insurance it can be hassle with endless obstacles. There are a ton of terms used in the insurance industry and we are here to break it down for you. When purchasing insurance you will hear the terms “premium”, “limits”, and “deductibles” in regards to your policy. Auto Owner’s insurance has a great article, “What Are Insurance Premiums, Insurance Deductibles and Policy Limits?” and how it pertains to your policy.
What is that bolded dollar amount at the top? That magical number is known as your premium. This is the amount you pay to uphold your policy. Depending on the carrier, you can pay this monthly, quarterly, semiannually, or pay in full. The premium is based off the coverages provided by the insurance provider.
If a tragedy occurs, what are you paying out of pocket? That is your deductible. In other words, it is what you pay in case a claim is filed.
How much coverage do I have on my policy? It depends on the type of policy, what are we insuring, what is the value, etc. This is your maximum dollar amount insurance will pay towards a covered loss for that particular instance or item.
Don’t let insurance terminology intimidate you! As your trusted insurance agent, The Service Agency is here to help explain, provide, and assist you when shopping for your insurance needs. If you need a quote or have any questions on your current policy, contact us today!