Insurance Review

Front

What is a deductible in an insurance policy?

Back

A deductible is the amount of money that a policyholder must pay out-of-pocket before the insurance company pays for covered expenses.

Front

How does collision coverage work in auto insurance?

Back

Collision coverage helps pay for damages to your car after an accident, regardless of who is at fault, after the deductible is met.

Front

What is an insurance premium?

Back

An insurance premium is the amount you pay to your insurer, typically on a monthly basis, for coverage, regardless of whether you use any services.

Front

What factors influence the cost of insurance premiums?

Back

Insurance premiums are influenced by risk factors such as age, driving history, location, and type of coverage.

Front

How do insurance companies make a profit?

Back

Insurance companies make a profit by collecting more in premiums than they pay out in claims each year.

Front

What is Bodily Injury coverage in auto insurance?

Back

Bodily Injury coverage helps pay for medical expenses and compensation for injuries to others if you are at fault in an accident.

Front

What does it mean to be underinsured?

Back

Being underinsured means having insufficient insurance coverage to fully protect against potential losses or liabilities.

Front

What is the purpose of liability insurance?

Back

Liability insurance protects you from claims resulting from injuries and damage to other people or property.

Front

What is comprehensive coverage in auto insurance?

Back

Comprehensive coverage pays for damages to your car not involving a collision, such as theft, vandalism, or natural disasters.

Front

What is the difference between actual cash value and replacement cost?

Back

Actual cash value is the cost to replace an item minus depreciation, while replacement cost is the amount needed to replace an item without deducting for depreciation.