Hello out there to all of you curious insurance inquirers! My name is Anna and I just started working at Cardinal. I am new to the insurance business, but I have already learned so much. I have many questions about insurance, as I'm sure is the case with many of you. While I may not have the answers - I will be picking the brains of the Cardinal Insurance Team. Shoot me an email with your questions - and I will get the answers! firstname.lastname@example.org
This is the first of a two-part post entitled “Top 10 Insurance Terms Everyone Needs to Know”. If you are like the majority of the population, you may be a bit intimidated by the wide world of insurance. Well, I am here to help! Below, I have made a list of the most common terms you might hear thrown at you by an insurance agent.
So, buckle up and let’s go!
Insurance provides financial protection of your assets and family against sudden and accidental loss (including loss of life, property, and livelihood).
This is probably a term that is familiar to you. To better understand liability, try asking yourself: “What potential harm could I or something I own cause another person? What damage caused to another person/thing is my responsibility?” I.e. My dog bites my neighbor, my car hit another person’s car, I didn’t leave the emergency brake on and my camper just ran into a building! Etc.
A claim, also know as a loss, is an unexpected event that causes financial harm to you, the insured. In other words, THIS IS WHY YOU HAVE INSURANCE. If an accident occurs, call your agent ASAP. If you do not tell them, they cannot help you.
FYI: I recommend that you talk with your agent FIRST, before calling your insurance company. He/she can help you determine whether or not the claim is substantial enough to be turned in to you company. Again, your insurance agent is here to help.
4. Premiums VS Deductibles
Premium: Let's talk about the money you pay in to all of this. Your insurance company will ask that you pay for the coverages on your policy. This amount varies based on what is listed on your policy, as well as a multitude of other underwriting factors. The premium makes the policy a legally binding contract.
Deductible: Your deductible is what you will have to pay if you and/or your insured property are damaged. Fortunately, because you are insured, this amount is substantially lower than what you would have to pay without insurance. Remember, insurance is always expensive when you purchase it, but NEVER when you have a claim.
FYI: A note about deductibles. You can think about it in this way: this is what you are willing to assume (financially) in case of a loss. A higher deductible means a lower premium because the more you are willing to pay out of pocket, the less the insurance company pays out on your behalf. Just a warning: If you aren't able to afford your deductible at the time of the claim, the insurance company will not pay their share.
When you file a claim, the insurance agency sends an adjuster to come assess the damage. This person will walk you through the process and work to get a resolution to your claim. The adjuster is often the person who will write you the check!
Anna Buck works as an administrative assistant at Cardinal Insurance Services Inc. She has a masters degree in vocal performance from Indiana University and is currently pursuing an Artist Diploma at Ball State University,