How to Read an Insurance Quote
- 1). Find the limits of coverage -- the maximum amount the insurance policy will cover for any given loss. Note that these limits might change depending on the circumstances. However, the quote should include information for all such events.
- 2). Note the deductible for the policy. This is the amount you must pay out of your pocket before the insurance company pays anything. In some health insurance policies, a "copayment" replaces the deductible. In many policies, there is a maximum yearly out of pocket expense no matter how many different losses you experience.
- 3). Check the policy premium -- the amount you must pay each year to keep the policy in force. Also check the payment options for the premium, including extra fees for different forms of payment.
- 4). Note all exclusions or limitations to the policy. This section says a lot about the actual value of the offer. Two similarly priced policies with identical maximum benefits and deductibles might look the same. But if one has a long list of exclusions, the other is the better deal.
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