Insurance 101

Before you purchase insurance, here are some clarifying points to help you get started:


What types of insurance policies are necessities?

You can purchase insurance for most things, and many of those decisions will be up to your discretion according to what your needs are. However, there are a few that are considered necessities: Auto insurance, health insurance, homeowners/renters insurance, and life insurance.

What is the difference between your deductible, premium, and copay?

These are terms dealing with health insurance. A deductible is the amount you pay out-of-pocket for medical services before your insurance policy kicks in. A premium is how much it costs for you to maintain your policy. A copay is the fixed amount you pay for a health care service, usually during a visit to the doctor's office or filling a prescription for medication. This is considered cost sharing – when both you and the insurer pay toward your healthcare expenses.

Are there instances in which insurance policy lines can get blurred?

In some cases, yes. For instance, sleeping in your car regularly isn't enough to make it a residence. But if you were to have something like an RV – with areas for sleeping, cooking, and toilet facilities, it can then officially be declared a residence. At that point, you would need to get an additional homeowner's insurance policy along with your auto policy.

Does an insurance policy cover everything from A to Z?

Many health related services are not covered through health insurance. Car insurance covers damages due to an accident, but it doesn't cover routine repairs. Damages brought on by earthquakes and floods aren't covered through homeowners insurance. This is typical of insurance policies. Your goal should be to find the most comprehensive insurance policies in the most important areas for you.

Latest Insurance Articles

Insurance Ads: Trick or Treat?

Remember that ad…? Of course you do, because even when you think advertising isn’t having an effect on you, it…

Frank Addessi
Apr 11, 2019
Protecting Your Business From Natural Disasters

Running a business is fraught with challenges that must be addressed on a daily basis, ranging from personnel and payroll to…

Frank Addessi
Dec 13, 2017
Small Business Insurance Basics

There are about 45 million businesses in the United States of which more than 99 percent are considered small businesses.…

Frank Addessi
Oct 7, 2014
Separating Obamacare Facts From Fiction

Chances are you already have a strong opinion about Obamacare — and you’re not alone. The one consistent factor since…

Frank Addessi
Aug 28, 2015
The Affordable Care Act and You

The Patient Protection and Affordable Care Act, commonly referred to as Obamacare or the Affordable Care Act was signed into…

Frank Addessi
Oct 4, 2019
Liability vs Full Coverage Car Insurance: Which Is Right for Me?

When you’re shopping for car insurance, one of the biggest questions that comes your way is whether or not you…

Trent Hamm
Trent Hamm
Oct 15, 2019