Are you currently shopping around for insurance? From the varying types of coverage to the complex contracts, many consumers get lost in the jargon and sign up for a policy that doesn’t suit their needs. Other consumers take on considerable liability by not investing in any insurance policies. Luckily, Integrity Insurance Solutions has been serving and educating the San Marcos, Texas, area for years. Below they outline the top five insurance terms every consumer should know and understand. 

5 Must-Know Insurance Terms

Premium

The premium is the amount you pay for your specific insurance policy, either annually, bi-annually, or monthly. To keep your coverage active, you must pay your premiums on time. If you are late, a lapse in coverage can occur, leaving you exposed to certain liabilities. Some coverage, such as auto insurance, offers reduced premiums for specific geographic areas, educational levels, and good driving records. 

Deductible

If you need to make a claim on your insurance policy, the deductible is the amount of money you must pay out of pocket for the insurance policy to kick in. Policies with lower premiums usually have higher deductibles and vice versa. 

Co-Pay

Much like a deductible, a co-pay is a set amount agreed upon by your insurance company and vendor that you will pay out of pocket before your insurance kicks in. This is typical of medical specialist visits. 

Coinsurance

Depending on the policy you select, you may or may not have to pay a portion of each service after your co-pay or deductible are satisfied. This fee, called coinsurance, is generally around 20% of each service provided. 

Usual, Reasonable & Customary 

Usual, reasonable, and customary (URC) is a frequently used term within the insurance industry. It pertains to the regional expense of a service or product for which a claim has been made. For example, the cost of a bumper replacement in New York City might vary considerably from the cost of a bumper replacement in a more rural area. As with everything else, the average cost of a service or replacement product for each region will be considered before insurance is paid out. 

If you are shopping around for an insurance policy that’s right for you, the specialists at Integrity Insurance Solutions in San Marcos, Texas are willing to answer all of your questions. Give them a call today at (512) 396-2211 or visit their website for more information.