PF: Unit 9

getting car insurance bit more involved than finding lowest price. It's importnat get right coverage for your situation. 5 main categories/types of auto insurance

1) liability coverage 2) collision coveragee 3) comprehension coverage 4) personal injury protection 5) uninsured/underinsured motorist coverage

how much pay for injuries/ER visits etc changes over time and comes in 3 stages:

1) you pay - at beginning year you pay for most health care until you reach your deductible which is amount money have pay for own care before insurance company will share costs; once meet deductible move into stage 2 2) you and insurance pay - every time get health services insurance company and you share cost of those services. Amount depends on plan, usually you pay part of cost (fees called co-pay or coinsurance) and insurance pays rest. Doesn't go on forever. When reach certain amount, your out of pocket max, won't have pay for everything for rest of year 3) Insurance pays for everything for rest of year. Reached out of pocket max which is most money will pay for healthcare over an entire year. From once reach max never pay another penny for healthcare services

many factors insurance companies use to calculate how much have pay for auto insurance, but some have much bigger imapct than others. 5 top factors affect auto isnurance premium are:

1) your deductible 2) your vehicle 3) your mileage 4) your driving history 5) your personal information

property damage liability

if hit someone else's property whether be another vehicle, houses, tear up someone's year, trailer etc

liability insurance

includes bodily injury and property damage

if paying more than someone else, likely

lower deductible

provider

many cases is a doctor but can also be another medical professional

when file a claim,

means filing to get some money/repair/replacement. People never filed claim so keep paying money in and never get it back which is why some not fans of insurance but have to have it

choosing higher coverage limit means

might pay for more for insurance premium now, but could protect you from having pay other people's expenses later

liability coverage (5 main categories/types of auto insurance)

most common because almsot every state requires you to carry some minimum aount in order to drive legally. Pays for damage you cause in an acident when you're at fault. Specifically pays for bidly injuries and property damages of others. Does NOT cover any of your damages, protects others from damage you cause and also protects you financially. Without it can be on hook for entire cost of accident out of pocket covers damage you do to others

another important part plan is out of pocket max which is

most ever have to pay in any one year at least for benefits your plan covers. Insurer pay 100% anything beyond max for rest of year

claim history (how is inusurance premium calculated)

number times filed a claim meaning filing was damage to property so get money from it. More claim, higher insurance premium gonna be

your house's car's age and condition (how is inusurance premium calculated)

older housecar the less cost insure it. Newer car/house is, more gonna cost because costs more, newer one gonna cost more than older

insurance company offers its

protection by grouping together people who all feel exposed to same risk

network/in-network

refers to a group of providers that insurance company works with

collision coverage (5 main categories/types of auto insurance)

second most common type of car insurance coverage. Will pay for damages to your car from an accident, even when you're at fault. Pays for damage incurred when driving and collide with another object. optional covers crash-related damages to your car

specialist

sometimes primary care provider refers you to this has more training in specific area of medicine and works with patients who have certain types of symptoms and condisitons such as diabetes or cancers

Note: every year

stages start over so next year go back to stage 1 and will have to go through all stages again

only small proportion of policyholders will actually

suffera loss in any given year

Co-payment

when specific dollar amout like $25 is set amount pay up front for doctor's visit or prescription and plan pays rest

insurance =

"in case" because need it just in case and don't get money back

4 benefits of emplouer based coverage

1) Is guaranteed issue which means could have any health problem in world and not be turned down for isnurance 2) governed under federal law and provides better benefits such as pregnancy care and better mental health care. Individual policies governed by state law and each state varies in requirements placed upon insurers 3) Employers count health insurance as business expense which means benefit not taxed. Employers have benefit of paying their part of premium pre-tax basis when purchansed through employer which means save money on taxes. Individuals who don't get employer based coverage end up paying on after tax basis causing them pay more for health insurance 4) Employers pay part of premium of employee. Employer now sharing how much benefit worth which did not used to do

coverage limits you choose (how is inusurance premium calculated)

amount coverage you have full coverage insurance on car covers your vehicle and any other property might damage (other's cars, house etc) that be covered liability only protects other people, if wreck car into someone else, insurance will cover their vehicle yours is not covered

each coverage has a limit

amount insurer agrees to pay up to on an accident what you pay. no deductible attached bodily inury just have pay additional if fix car on whatever your coverage is

premium

amount pay monthly for insurance, instead calling it insurance payment call it this pay every month every month pay same amouont in order to keep insurance and that is amount is this; with this get some preventive care free (included in premium amount) including vaccines or screening for diabetes, cholesterol, or breast cancer which covered by this

how much does insurance cost

at least pay for monthly premiums and at most pay for monthly premium + out of pocket max, but all depends on plan choose and care you and family need. Can get help from healthcare.gov assister to choose plan right for you

pool

by collecting amount of money, premium, from each person, insurer can accumulated fund called this out of which losses can be paid insurance companies get money to pay for losses suffered by their customers from this of money collected each month from all of their collective customers

credit rating (how is inusurance premium calculated)

can effect premium as well

insured through new health insurance market place

depending on income may be eligible for tax credit that pays portion of your premium

your mileage (3 - 5 top factors affect auto insurance premium are)

more time spend on road, more liekly are to get into an accident which why number miles drives each year affects auto insurance rate. Generally if drive 9000 miles or less qualify for low mileage discount; however, in order to get this discount important make sure insurance company knows mileage pay more if drive a lot because farther drive more likely, odds of probability, are you gonna get into an accident sooner or later

out-of-network

ones who don't have contract with your insurance so pay more to use them

understanding policy is important

to your health and wallet

insurance removes

uncertainty by transferring unknown financial consequences of a loss to someone else usually an insurance company. This security comes from paying an insurance company an agreed sum of money a premium

optional coverages you select (how is inusurance premium calculated)

various things especially for houses like earthquake insurance etc

if under 26 can stay on parent's health insurance on 4 ways but own health insurance

1) health insurance marketplace - depending on income may be only way get savings on monthly premiums and other costs based on income If don't qualify for savings: 2) directly from an insurance company 3) through an insurance agent/broker - generally, agent work for single health insurance company while brokers sell plans for several. Both can help you and don't pay more for having them as generally paid by insurance company who plan they sell and may sell only certain companies' plans too 4)from another online health insurance seller - offer health plans from number insurance companies. Let you compare prices and features and then enroll with insurance company. May not offer all plans available in area.

banks can provide

compensation when so many losses occur by predicting number losses might have. Won't known exactly byt experience and statistical data can give them pretty good idea.

reason both homeowners and car insurance premiums may depend on

credit score because if responsible with paying your debts on time chances are gonna take car of property as well

primary care provider

doctor see first for most health problems

with perscriptions plan

has list of perscriptions that will pay for called formulary but prices vary. Check with doctor or pharmicist because generic drug might fix you up same as brand-name drug but price difference could be huge

deductible

is amount money you agree to pay to help repair/replace your car if have claim covered by your policy then insurance pays rest how much comes out of own pocket before insurance starts paying; depending on plan might have one for all care or might only appply to some types of care like hospital stays or perscriptions so read plan material because could add up to thousands of dollars amount pay for servises before plan begins to pay or amount you pay first

once have insurance card want to

keep it in your wallet. to better odds at staying healthy be sure take advantage of 3 preventive services that all new insurance plans provide

when it is your fault in accident,

file a claim which then goes on records and messes up your payments. When not your fault, then the insurance will step in to cover your costs not covered by other insurance company and does not go down as a claim

have questions call

health plan and ask or check with hospital or doctor. If still have questions state insurance department or consumer assistance program can help

wheter in or out of network how pay extremelly important so play close attention to these terms

deductible coinsurance copayment

have medicaid most likely

don't have to pay any premium at all as federal government and state take care of it

get insurance at work

employer probably pays most of premium and rest comes out of paycheck automatically

your deductible (1- 5 top factors affect auto insurance premium are)

common auto isnurance deductible is $500; however, choosing higher amount could save you money, but because choosing higher deductible means you'll pay that amount out of your pocket before your insurer pays for repairs upside to having high deductible is causes you pay less on montly premium; downside having higher deductible is when do get into an accident going have pay more money up front

deductible amounts (how is inusurance premium calculated)

deductible is amount you're responsible for when get work done after an accident then insurance covers rest. The lower deductiblel highter insurance premium. so saying want to assume less risk than lower premium. If take on more risk higher premium

all people in risk pool don't pay same amount money because

different deductibles, liklihood of risks (had previous claims), age. Younger are more pay. Gender as well, teen boys pay more than teen girls. Type of property (type vehicle, houses - larger houses pay more than smaller houses, bigger houses cost more becauase if burns down costs more to replace it

costs affect by insurance plans provider network. Lists

doctors and hospitals connected to your plan. Insurance companies negotiate discounts with these providers. Stay in-network and discounts get passed to you. Go out-of-network and could end up paying full price and out of pocket limit won't work if go out of network. In some plans, like HMOs or CPOs insurance would pay nothing if go out of network. In other plans, like PPOs, insurance will cover you no matter where go but will pay lot more if go out of network. If want go see specialist, some plans require a referral from primary care doctor

Have to pay premium

every month or insurance could get cancellled. Kinda like shared heath care piggy bank as we all chip in each month, even if health, so money there where need it

insurance companies determine how much you pay for insurance coverage based on how

how many accidents, illnesses (health insurance), how many deaths will be within certain group policy holders which is where math techniques, such as probabilty and stats, come in handy. Age, risk level, previus claim history, amount property insured etc

uninsured motorist coverage

if get hit by somebody and they don't have insurance, your insurance of this will cover you up to whatever limit have; by law have to have insurance of vehicle (either full/liability) and if somebody doesn't and they wreck into you then your insurance will cover it based on amount you set then person without insurance has deal with legal issues because probably get arrested

insurance companies make money

if have pay out large sums of money for new homes, cars, boats, etc by all people who have that insurance for their house etc so that's where money coming from, may have pay littler more sometimes like need new home but amount money taking in overall off sets that. Basically paying insurance and they are taking that money for somebody else's claim. All money collect goes into pool then take money out when need it

coinsurance

if it's a percentage of the bill typically percentage, it's the amount have to pay as you share of cost after deductibe

bodily injury liability

if other people injured in an accident, this amount will cover; per person - if one person injured, per acident - everybody injured and is max gonna pay which can cause bakruptcy because amount costs pay for bill

personal injury protection (5 main categories/types of auto insurance)

if weren't at fault, then other drivers liability coverage should pay for your damages but can purchase own medical coverage for additional protection but is usually optional but certain no-fault states require you to buy form of it called this aka "no-fault insurance" because like medical coverage will pay costs of treating your injuries regardless of who was at fault in an accident

injuries suffered by you or passengers:

if weren't at fault, ther other drivers liability coverage should pay for your damages but can purchase own medical coverage for additional protection but is usually options but certain no-fault states require you to buy form of it called personal injury protection

sometimes stay in network can be tricky as

in hospital is possible surgeon in network but anesthesiologist not. If this happens, don't be afraid to negotiate with provider or file an appeal with insurer

insurance comes in handy when get

injured. Insurance helps a lot but doesn't mean all health care going to be free. There are lots of details about insurance plan that affects how much pay when get sick or injured. If have medicaid lot services could be free otherwise will likely have to pay something when go to the doctor o rfill a perscription this is called copay/coinsurance

coverage limit

insurance company only pay up to this amount. If amount left over after deductible > this, will come out of person's pocket how much insurance company will cover

insurance premium

is amount you pay to insurer regularly to keep a policy in force. May be able pay premiums montly/quarterly/every six months/annually, depending on surance company and your specific policy basically your payment for being insured

comprehension coverage (5 main categories/types of auto insurance)

losses from non-crash stuff like theft/weather. Covers losses totally out of your control. Like collision it is optional will protect you from losses due to fire, vandalism, theft, hitting an animal, or damage caused by certain natural disasters. Won't cover everything; EX: most policies won't cover damage due to freezing even though it's weather related. Usually don't cover break downs either. Find out what's excluded before purchasing. Often more attractive to drivers with new expensive vehicle. Some lenders may require this as condition of financing of your behicle. Some lenders may require this as cndition of financing your vehicle covers certain unpredictable damages to your car things like if was hail damage/hit a deer that be covered under this

the higher the deductible, the

lower premium. Choosing higher deductible means might pay less for insurance premium now, but should be prepared to pay more out of own pocket if have an accident

when shopping for car insurance policity

make sure knwo exactly, what getting, and why. Fing out what's covered, what's excluded, what nee d to stay legal, and what need to stay protected financially

your vehicle (2- 5 top factors affect auto insurance premium are)

make, model, and year of car play big role in what you'll pay for insurance; in general, more your car is worth more will pay to insure it. If car popular with thieves, may also drive up your rate age and type vehicle does affect premium. In general, the *more* car is worth, *more* you'll pay to insure it/for insurance

how is inusurance premium calculated

many factors may affect premium such as/is how insurance companies select criteria determine cost of premium: coverage limits you choose deductibly amounts optional coverages you select your home's/car's age and condition claim history credit rating

your personal information (5 - 5 top factors affect auto insurance premium are)

many personal factors such as age, gender, and marital status affect auto insurance rate. EX: younger drivers, especially men, pay more than oler drivers being married can also drive down your rate

better to pay

monthly insurance premium than just save same amount of money in savings account because if something happens, especially medical stuff, it gets pricey and insurance will cover that

your driving history (4 - 5 top factors affect auto insurance premium are)

one speeding ticket can raise auto isnurance rate by nearly 30%. More serious offenses, like DUI, can double rate/more depending on where live (basically 100% because doubling it)

most types insurance are

optional but get insurance because covers risks can't prepare for so don't have save all your money

things think about when choosing plan each year

premiums, doctors in-network, hospitals in-network, deductibles

basic principle of insurance is to

protect an individual/company from effect of financial loss caused by events like fines, floods, or accidents

MO has

standard minimum requirements for auto insurance coverage comparented to other states: some more strict (have more) or others more lenient (have less)

uninsured/underinsured motorist coverage (5 main categories/types of auto insurance)

will protect you against risk being hit by an uninsured/underinsured driver. Estimated almost 15% American drivers don't carry legal minimum amount of car insurance as required by their state. If hit by one of these people, you won't be able to collect from a liability policy don't have. Uninsured motorist coverage will pay for your medical expenses and lost wages, many states now require, it is for bodily injury but might have option purchase it for property damage as well underinsured kicks in when your hit and damages and expenses exceed/> limits of at fault driver's liabilty coverage