Are you planning to purchase a new insurance policy? Whether you want to get a new policy to replace one that you already have in place or you are looking to obtain a new policy for a new vehicle, knowing how to compare insurance quotes and policies is essential if you hope to get the best value for your money. Of course, when it comes to understanding how to compare insurance quotes, you have to know how to compare more than just the amount you have to pay each month for the coverage.
What is the Premium?
When it come to understanding how to compare insurance quotes, most people only think about comparing the premium. The premium is the amount you pay each month in order to have the coverage in place. Most companies will adjust the amount of the premium every six months and will send out a statement at this time telling the policyholder how much the insurance coverage will cost each month for the next six-month period.
Most people only think of the premium payment amounts because this is the money they have to actually pay each month. When it comes to how to compare insurance quotes, however, you have to think beyond just the amount of the premium. You also have to consider the deductible amounts.
What it the Deductible?
The deductible is the amount of money you have to pay before you receive benefits from your policy. For example, if you are in a car accident and the insurance company determines you experienced $5,000 worth of damage, $5,000 would be the amount of your benefit. Before you receive this benefit, however, the insurance company will deduct the amount of your deductible. If your deductible amount is $500, you will only receive a benefit amount of $4,500. If your deductible amount is $1,000, on the other hand, you will only receive $4,000 in benefits.
The amount of your deductible will affect the amount of your premiums. The higher the deductible amount, the lower your premiums will be. The lower your deductible amount, on the other hand, the higher your premiums will be. Therefore, you have to determine if you would rather pay higher premiums so you can pay a lower deductible if an accident occurs or if you would rather pay a lower premium and risk having to pay a higher deductible if you are involved in an accident. Of course, the amount of your coverage is also an important factor to consider.
What is the Benefit Amount?
When it comes to how to compare insurance quotes, you also have to consider the amount of your benefit payout. The higher your coverage, the more you will pay for your premiums. So, if you carry only $5,000 worth of coverage, your premiums will be less than if you were to be carrying $15,000 worth of coverage. You probably won't have much say over how much coverage you carry in terms of benefits for replacing or repairing your vehicle, but you can make changes to the amount of liability coverage and medical coverage you choose to carry.
This article was dedicated by Leading Insurance Quotes, known as LIQ. If you would like to compare multiple quotes and ave on your premium today visit Leading Insurance Quotes to find the cheapest insurance quote today! |
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