Most people have numerous types of insurance policies that each may be designed to offer different financial benefits. Life insurance, for example, provides death benefits to loved ones if you pass away. Dental and health insurance make healthcare services more affordable. Auto insurance is a legal requirement and can decrease out-of-pocket expenses after an accident or another type of mishap. As important as it is to have these and other types of insurance, the reality is that many people are not aware of important details about their various policies. These are some of the top things that you may not know about your coverage and that you should learn about today.
Their Deductible Amount
With most types of insurance, you are required to pay a deductible when you file a claim. This is required with each claim, and you can usually choose the deductible amount when you set up coverage within a specific range. Many people forget that a deductible is owed with a claim and what their deductible amount is. This can create financial strain when you need to file a claim and have not prepared your finances for the deductible payment.
Inclusions and Exclusions
A common issue that people run into with their insurance coverage is trying to obtain benefits and learning that their policy does not cover that expense or need. On the other hand, some people may pay for things out of their own pocket because they falsely believe that they do not have coverage for the expense. In order to effectively take advantage of your coverage, you must know what your policies’ inclusions and exclusions are. As you compare options through an insurance network, pay attention to inclusions and exclusions. This will help you to get the coverage that is right for you.
Coverage Limits
Many people do not understand that their insurance policy only provides benefits up to the coverage limit. Any expenses that exceed that limit are your responsibility. For example, if you have $20,000 in collision coverage on an auto insurance policy and your accident expenses are $45,000, insurance will pay for $20,000 of covered expenses. The remaining amount is your responsibility.
You can see how important it is for you to understand fully what your coverage includes and how it works. If you have any specific questions about your policies, your agent may be happy to answer those questions. If you determine that your coverage does not meet your current needs, it may be time to explore other options.