Insurance Shopping Basics If buying insurance is on your to do list, there are a variety of planning measures you must consider. However, if you do not understand some standard concepts and terms, this can be an extremely daunting task. We want you to be completely in the know so that you can accomplish the task of buying insurance with ease, which is why we have gathered a list of explanations you should be aware of:
- Premium - When you purchase insurance, you will pay a monthly premium. You can also choose to pay quarterly and annually, which may land you a substantial insurance discount. This premium amount can be decreased if you choose a higher deductible.
- Deductible - Speaking of deductibles, this number is extremely important, as it will determine how much you will be required to pay before you receive any coverage through your insurance policies. For example, choosing a $1,500 deductible may be dangerous if you do not have a substantial emergency fund, as you will be required to pay that $1,500 before your insurance company covers your damages.
- Coverages - Each type of insurance policy will come with different coverage options that you will need to choose from. It is important that you go through this step with an independent insurance agent in detail so that you can ensure you are receiving the right amount of coverage. Since many perils are excluded from insurance policies, you will want to ask questions regarding limitations and exclusions.
- Limitations - Speaking of limitations, each policy will come with a set dollar amount of coverage. This means that you will not receive coverage past your selected amount, unless you opt for excess coverage.
Serving Beaumont, Banning, Calimesa, and Redlands, contact Little & Sons Insurance Group for all of your California auto insurance needs. Your security on the open roads is our top priority, and we will go above and beyond to secure the protection you deserve.
