Introduction to Insurance

Insurance is a financial topic of paramount importance for every individual. Insurance is designed to protect the financial well-being of you and your dependents in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between you and the insurance company. In exchange for payments from you (called premiums), the insurance company agrees to pay you a sum of money upon the occurrence of a specific event. That event may be as mundane as a visit to the doctor or as serious as a car crash, depending on the type of insurance.

After contacting an insurance company about entering into a policy, you will receive a quote, which is the total amount of money you will need to pay over the term of the insurance policy in exchange for coverage. When you have agreed to pay this amount and the insurance company has agreed to insure you, you will receive a copy of the policy detailing the terms and conditions of your policy.

If an insured incident occurs, you will make a claim for payment from the insurance company. You will receive the amount you are insured for in the case of the specific incident minus a deductible that you must pay for each claim. Higher deductibles are associated with lower premiums and vice versa. Therefore, for claims that are likely to be made, it may be in your best interest to pay a higher premium in exchange for a lower deductible.

Given the importance of insurance, it is essential to make sure that your coverage is sufficient. However, paying for too much insurance or insurance that you don't need can be a significant drain on your finances. Investigate all potential insurance policies carefully in terms of your own needs at the time of purchase and throughout the term of the policy

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Steps To Take If You're In An Accident

(NAPSI)-Car accidents can wreak havoc on an otherwise peaceful day. Even if they're minor, they can often create confusion. You might ask yourself, how should I react? What should I do?

Leading car insurer Progressive offers these simple steps to follow after an accident:

1) Stay calm. Keeping a calm demeanor helps you stay in control of the situation.

2) Make sure you and your passengers are OK. Move as far off the roadway as possible but stay at the scene of the accident. Warn oncoming traffic by activating your hazard warning lights and/or setting flares if you have them.

3) Call the police. Call 911 or the appropriate emergency number to report the accident.

4) Contact your insurance company and report the claim. The sooner your insurance company knows about the accident, the sooner it can start working to resolve your claim.

5) Do not admit fault. To protect yourself legally, do not discuss the car accident with anyone other than the police and your insurance company.

6) Exchange vital information with the other driver involved in the car accident. Write down the name, address, phone number and license numbers of all drivers and witnesses, particularly those who were not riding in a vehicle involved in the accident. Ask for the name of the insurer and policy number of all drivers involved in the car accident.

Before you get into an accident, make sure you have the right car insurance
. Because the last thing you want to do when you're in a car accident is worry about having to pay for the damage. (news.carjunky.com)

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