Whether you’re shopping for a health insurance policy or need coverage for your vehicle, having a genuine understanding of associated terms is crucial. A reputable insurance agency will make sense of this confusing language for their clients, which may be difficult for the average person to comprehend. Fortunately, the brokers at Michel Insurance Agency go out of their way to ensure clients in Florence, KY, are fully aware of common insurance terms.
An Insurance Agency Explains 5 Important Terms
Premiums are the amount you regularly pay for your insurance. Depending on the plan, you might be obligated to pay premiums once a month, every six months, or once a year.
A deductible is the amount of money you’re obligated to pay before your insurance kicks in. For instance, if you’re deductible is $1,500, you’re responsible for that amount before your insurance coverage takes over. The higher the deductible, the lower your premium payments will be.
Comprehensive Coverage (Auto)
When it comes to car insurance, a comprehensive policy refers to coverage for any damage that occurs outside of collision. A standard auto policy typically only covers collisions, so if your vehicle were damaged in some other way, the repair costs would not be covered.
Regarding health insurance, a copayment refers to the money you must pay when seeking medical services. Copays can range in amount, although around $30 is standard for visits to a primary care doctor. Specialized services may entail a higher copay.
Coinsurance is another term related to health insurance. This refers to the amount you’ll be required to pay for health services, such as hospitalization. You may be obligated to pay 30% for services, while your insurance company will be responsible for 70%. In general, you’ll be required to pay coinsurance after your deductible has been satisfied.
As a family-owned and -operated company, Michel Insurance Agency has established a reputation in Florence for treating their clients like family. Call (859) 371-9458 today to schedule an appointment with a skilled insurance broker. If you’d like more information on the full range of services offered by this insurance agency, visit them online.