Frequently Asked Insurance Questions | Find Learn Save

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Frequently Asked Insurance Questions

What are the differences among the main types of insurers in the US?

There are approximately five major types of insurance available in the United States. Mutual insurers are companies owned by their policy holders while reciprocal exchanges are companies wherein customers insure each other. Another type of insurance company are the so-called Lloyd associations in which those managing assume personal risk in the performance of the company by having their own wealth invested in the firm. HMOs (Health Maintenance Organizations) offer their customers health coverage for a pre-paid premium.

What are the main types of insurance?

Auto, health, home, and life insurance are among the primary forms of insurance familiar to most people.

What types of home insurance should I consider?

Determining which type of home insurance is right for you necessitates having a good understanding of your potential losses and acceptable risks. Consumers have a wide range of options available to them and can increase coverage and/or reduce redundancy after evaluating their situation.

What is health insurance?

Health insurance is essentially medical risk prevention/protection mediated through a contract between the service provider and the user for a predetermined premium.

What is the difference between a group health plan and an individual plan?

Any plan with two or more people where the employer (sponsor) pays at least 50% is usually considered a group plan. Unlike individual plans, group plans are open to a wider variety of people, including those with expensive preexisting medical conditions.

What types of health policies are available?

There about four types of health policies available to consumers: health maintenance (HMOs), the point of service plan, the preferred provider organization, and the traditional individual health indemnity plan. These plans vary in their respective prices and available services.

Is it necessary to have insurance before buying a new car?

There are three factors that may dictate the need for insurance: first time car buyer, state of residence and method of payment. Typically first-time car buyers have to purchase some kind of insurance because they are presumed to not have any preexisting automobile insurance. Certain states also require car buyers to have insurance before driving the car off the dealer's lot. Buyers financing their vehicles through particular lenders may also need to have the vehicle insured in order to protect their interest.

What should I consider when shopping for auto insurance?

First off, evaluate your commitments in order to determine the proper liability limits. Doing so may protect your assets in case of lawsuit thereby insulating your family and/or business from potential harm. The second consideration pertains to whether or not you mind paying higher deductibles, if you do not then you may be able to lower your premiums. You also may want to look into the optional areas of coverage in certain plans in order to maximize your protection. Lastly, before choosing a company, consider value. Companies that have greater financial security but are a bit more expensive may prove to be more valuable in the long run.

What does building insurance cover?

Typically, home insurance covers the domestic purposes of the house, sheds, garages, and greenhouses, and other features on the physical property.

How much should I insure my contents for?

Your contents should be insured according to the cost of replacement.

What do I pay if I make a settlement?

Your portion will be calculated according to what is not covered by the claim settlement.


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