If you've had special needs at some point in your life, you've probably dealt with insurance at some point — whether it's getting your first job and signing up for health coverage or buying a home and shopping for homeowners insurance.
If you’re just starting out in the workforce, you may feel overwhelmed by all the options that are out there, especially since everyone has their own way of doing things and their own jargon to describe everything they do.
Don’t worry; we’ve got all the answers to your questions on insurance here in this FAQ guide on how to buy insurance.
What is an insurance policy?
An insurance policy is a contract between you and an insurance company.
In exchange for your premium, the insurance company agrees to pay for your covered losses.
A typical policy includes four parts: declarations,
insuring agreements, exclusions, and conditions.
What do I need insurance for?: The most common reasons people buy insurance are in case of loss or damage to property, injury or death caused by someone else’s negligence (like getting into a car accident),
as well as providing money if they can’t work because of sickness or injury.
Who should get insurance?: If you have any assets that could be damaged by fire, theft, flood, etc., then you should probably invest in some type of protection.
You may also want insurance if someone lives with you who isn’t on your lease agreement like a roommate or parent; without them living there, it may not be covered under their homeowners’ insurance.
Why do I need it?
Insurance is there to protect you financially in the event that something goes wrong.
Whether it’s your car, your home, your business, or your health, insurance can help you get back on your feet after an accident or disaster.
It’s important to have insurance because it can help you avoid financial ruin.
How do I get it? (two sentences): You can get insurance through an insurance agent or broker, or directly from an insurance company.
If you buy insurance from a third party like Geico, you may be able to save money by getting discounts for bundling policies together.
Insurance agents and brokers are typically paid commissions for selling insurance policies, so they may have incentives to sell them.
When buying insurance from a third party like Geico, make sure that the coverage amounts and deductibles match your needs and budget. Ask about what’s covered and what’s not covered under the policy before purchasing anything.
How do I shop for a policy?
When you’re shopping for insurance, there are a few things you’ll want to keep in mind.
First, you’ll need to decide what kind of coverage you need. Then, you’ll want to compare rates from different insurers. Finally, make sure you understand the policy before you purchase it.
Insurance is often complicated and can seem overwhelming when you first start looking into it. By taking your time and understanding all the basics, you’ll be able to choose a plan that meets your needs.
The following questions and answers will help you find out more about insurance policies, as well as explore some other helpful topics. What’s a deductible?
A deductible is the amount of money you pay toward a claim before insurance starts covering anything. For example, if your car is totaled in an accident and has an insurance deductible of $500, then you would have to pay $500 to repair or replace your car out-of-pocket (depending on how much the damages are).
What does coverage mean? There are two main types of insurance: liability insurance and collision/comprehensive insurance. Liability insurance pays for damages that someone else might cause to something belonging to you.
Where can I purchase an insurance policy?
You can purchase insurance through an insurance company, an insurance broker, or a direct writer.
An insurance company is a company that sells insurance policies to individuals and businesses.
An insurance broker is a middleman who works with multiple insurance companies to find the best policy for you. A direct writer is an insurer that sells policies directly to customers without using a middleman.
What are the different types of insurance? (twelve sentences): The most common types of insurance are health, life, auto, homeowners, and renters. Health insurance covers medical expenses for you and your family.
Life insurance pays out a death benefit to your beneficiaries in the event of your death. Auto insurance covers damages to your car in the event of an accident.
How long does it take to get coverage?
The time it takes to get insurance coverage varies depending on the insurer and the type of policy you’re looking for.
In general, it can take anywhere from a few days to a few weeks to get covered. The best way to find out how long it will take is to contact the insurer directly and ask.
Are there any benefits to getting insurance?
What is the cost of insurance?
How much money does it cost?
How much coverage should I have?
What type of policy should I buy?
Can my children be insured in my plan?
Can my spouse cover me on their insurance?
Can I add my spouse or partner to my plan?
What else should I know before buying a policy?
Which insurance group is the cheapest?
Which insurance company is best?
When the insurance company won't pay?
- - Keep copies of all correspondence with the insurance company
- -Contact your agent and insurance commissioner
- - Contact the National Insurance Commissioner (NAIC)
- - Request mediation through the NAIC's Insurance Mediation Program
- -File complaint with NAIC if necessary