Insurance World

These questions will help to ensure that your agent is being honest with you and to help you understand some of the important variations in the different types of policies.

1. Stop Loss: Definition:The maximum out of pocket you will pay before you have 100% coverage for the rest of the year. For most companies it will be under $5,000. There are a couple of companies that don’t actually offer a stop loss. They will have limits for what the company will pay out but they have no limit to what YOU will pay out. This is the most important aspect to your insurance policy. I have seen people get stuck with $50,000-$200,000 worth of medical expenses without a good stop loss!

Question to ask your agent: What is my maximum out of pocket (stop loss) per year before I have 100% coverage?

2. Deductibles: Some companies will have separate deductibles for different aspects of their policies (testing/laboratory deductible, therapy deductible, chemotherapy coverage, separate accident deductibles, etc.). This is where some insurance companies depend on there being big loopholes so that they don’t have to cover things that may otherwise be covered. Ex: Things that one company may call testing and therapy, may not be considered the same type of procedure by another company. If something falls between categories for different deductibles, you will be stuck paying bill for all of it. You want a plan that has ONE DEDUCTIBLE. This way there are no gaps. You reach your one deductible each year, then everything that is covered under your policy will be covered as your policy states. It drastically eliminates holes in your policy that the insurance company can exploit.

Question to ask your agent: How many deductibles does my policy have?

3. Networks: You want to be in a plan that offers networks. Some companies will offer plans that are good at any doctor, any hospital, anywhere in the country. This is a great selling point but unfortunately, it is also very dangerous. Networks exist for a very good reason. If you have a plan that has big coverage holes in it and you go to a doctor for some reason, anything that is not covered by your policy you will pay 100% of all costs and you will pay 100% full retail price for it. Obviously this can be financially catastrophic. Insurance companies and doctors give their customers/patients what is called ‘Network Pricing”. If you go to a network provider with insurance and something is not covered by your plan, in many cases you will still get the big discount that the insurance company would get just because you have insurance. This is “Network Pricing”. Some companies offer nationwide networks so even if you travel a lot you will never be out of network. This is very important.

Question to ask your agent: If my company doesn’t use networks and I have medical procedures performed that are not covered by my policy, how much will I have to pay? Do I get a discount because I have insurance? (The correct answer to this is you will have to pay 100% of retail prices. If the company does not use networks, any other answer is either wrong or deceptive.)

4. Coverage per period of confinement: Some companies will have definitions for deductibles as “per period of confinement.” Ex: Your plan could have a $1500 deductible but we need to know if it is a yearly deductible or “per period of confinement” deductible. Some companies will list a period of confinement as 90 days. This would mean that if you are hospitalized for the same thing within 90 days you only have to meet one deductible. However, if 91 days later you have another problem with the same condition, you will then have to hit ANOTHER $1500 deductible. In addition, if you have a different medical problem within those 90 days and need to be seen by a doctor, you will again have to hit ANOTHER $1500 deductible!
Again, this is another potentially financially devastating scenario.

Question to ask your agent: Is the deductible a yearly deductible or a per period of confinement?

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With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?

Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.

So if you have found a discount car insurance broker don’t just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.

And there’s ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to help reduce the cost of car insurance without compromising other things.

7 Cheap Car Insurance Tips

1.
Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.

2.
Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.

3.
Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won’t get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.

4.
Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.

5.
Look at your policy when it comes to renewal time, don’t just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.

6.
Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.

7.
Find a good online discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don’t just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.

So if you’re in the market for cheap car insurance there’s some ideas for you. Don’t just accept that car insurance is always prohibitively expensive, get out there and do something about it.