There is no denying that insurance is a topic many people have trouble understanding or talking about. To some, this can be a real source of frustration considering insurance is such an important part of maintaining the health and wellness not only of a person, but of numerous things in their lives, such as cars, homes, business and more.
Because of the fact that insurance often seems like such a difficult or — as many would describe it — boring topic, many people do not even bother learning the basics about insurance. This leads to people, cars, businesses and more being under-insured or not insured at all, which can result in serious complications down the road.
To help prevent some of the complications, the following list provides a basic list of the most common questions people have about insurance and insurance solutions.
What is insurance?
The purpose of insurance is to make sure that the person or item being insured, will receive financial compensation in the event of loss or damage. For example, when one pays a monthly bill to insure their car, that means that they are making sure that if they are in a car accident, the damage to the car can be fixed and that all or most of the costs associated with repairing it are covered by the insurance company. Essentially, insurance provides a contingency plan for when accidents happen in many different scenarios.
Why do I need insurance?
People need insurance because the reality is, accidents happen. Whether car accidents or injuries or legal problems with a business or even natural disaster, some things just cannot be predicted. When people, cars and businesses are insured, it provides a little extra sense of security that an accident will not drain the person or business of all their funds. Without insurance, an accident can be extremely expensive to rectify out of pocket. For example, if a business does not have casualty insurance recommended to them through casualty insurance software, and their property is flooded after a bad rainstorm, they are responsible for paying out of pocket to fix the damages. This may take a long time and a lot of money, all while the business is likely closed down for repairs and not bringing in any additional money. This can be harmful to the business and essentially cause it to go under.
How much does insurance cost?
Many people are hesitant about getting insurance because they do not believe they have the funds to pay for it. While there are some expensive plans, it is much easier in the long run to pay a little bit per month rather than have to unexpectedly pay thousands and thousands of dollars at once after an unforeseen incident or accident. There are also numerous ways to browse through plan options to find one that will fit the buyers needs. Insurance agencies equipped with agency software are particularly helpful in this situation because they can provide real insight and help make the comparison process easier and more understandable.