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.

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

Life Insurance for Children

When it comes to buying life insurance for kids, you’ll find a lot of conflicting – and even misleading –…

Holly Johnson
Aug 16, 2019
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
Tips For Trimming Down Your Life Insurance Budget

As with anything else, a bit of extra care can really trim the dollars from our spending on life insurance…

Trent Hamm
Trent Hamm
Aug 16, 2019
Life Settlements: Why It’s Not Your Best Financial Option

Life Insurance Settlements Offer Policyholders Fast Cash, but Leave Beneficiars with Nothing. Find out More About Life Insurance Settlements.

Karla Lant
Karla Lant
Aug 16, 2019
What’s Covered by Homeowners Insurance Might Surprise You

When it comes to homeowners insurance, typical policies cover such hazards as fire, vandalism, and lightning strikes. While every policy…

Mia Taylor
Aug 16, 2019
The Tax Benefits of Life Insurance

In addition to protecting your dependents from financial hardship, life insurance policies are shielded from taxation under most circumstances. A…

Emmet Pierce
Aug 16, 2019