Many people have insurance because it is required, but not all insured individuals fully understand their policies. Though it is important to fully understand your policy, there are certain key terms to know. Below are a few terms that you should be familiar with in your New Jersey insurance.
The premium is the amount that you must pay each month. Most people know this term, but it is important that you read the fine print and see if there are any exceptions that might cause your rate to increase, or possible ways to help decrease it.
The deductible is the amount that the insured party must pay towards a claim before the provider will make a payment. This is usually highlighted along with the premium when you first review the policy.
A claim is a notice to the provider that the insured has incurred a loss. You want to make sure that there are no stipulations that could make your claim invalid, and be sure to follow the proper protocol to file a claim.
Limits or Caps
Limits or caps are the maximum amount that the provider will pay towards a particular benefit or policy. You should note whether the term restarts after a year or if it is for a lifetime.
By being aware of these main terms and fully understanding your policy, you can be sure to get the most out of your New Jersey insurance.