Insurance

The Simple Dollar team has compared tons of insurance providers to rank the best of the best. Explore the top-rated options to find your ideal provider.

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. Any others would need to be considered carefully based on what you can afford.

Difference between deductable, premium, and copay?

These are terms dealing with health insurance. A deductable 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 perscription 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 someting 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 a good insurance policy cover everything from A to Z?

Even with as many insurance policies that are out there, chances are you won't find one that covers everything involving one particular area. For example, there are many health related services that 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 doesn't mean these policies are bad – it just means you have to choose wisely. Your goal should be to find the most comprehensive insurance policies in the most important areas for you.

Latest Insurance Articles

Types of Life Insurance & How To Choose

A few weeks ago, I put out a call on Twitter and on Facebook for detailed posts that people would…

Trent Hamm
Trent Hamm
Aug 16, 2019
Tactics for Appealing Health Insurance Denials

A few weeks ago, I put out a call on Twitter and on Facebook for detailed posts that people would…

Trent Hamm
Trent Hamm
Nov 1, 2018
Health Insurance and Downgrading Your Job

In April 2010, my wife made the choice to step away from her job for the rest of the year…

Trent Hamm
Trent Hamm
Nov 1, 2018
Should You Buy Life Insurance for Children?

While the benefits of life insurance for parents are clear, the pros and cons of taking out life insurance for…

Trent Hamm
Trent Hamm
Aug 9, 2019
Why Not Walk Away from My Mortgage?

Kelli writes in: My husband and I are sitting on a thirty year mortgage (with twenty six years left to…

Trent Hamm
Trent Hamm
May 24, 2010
Raising Deductibles to Save Money on Insurance: Does It Work?

One common, painful bill that we all face is the insurance bill. Whether you’re talking renters insurance, home insurance, or…

Trent Hamm
Trent Hamm
Nov 16, 2018