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Back to Basics: Defining Premiums, Deductibles, and Limits | Centennial

Nov, 05
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insurance premiums limits and deductibles centennial insurance

Premiums, Deductibles, and Limits. If you have ever held an insurance policy these are likely terms you have heard before. But do you know what they really mean? Being educated on your policies can only work in your favor. Let’s take a look and get back to basics.

Defining: Insurance Premium

Your insurance premium is the monthly set amount you pay. It can also be configured to pay at regular intervals of quarterly, or annually. There may be a discount for paying ahead for the year as well with many insurers.

There are several factors that come into play when creating a premium cost.

Auto insurance: They will take into account – your age, your driving record, your vehicle, coverages chosen, coverage limits selected, your zip code, your yearly mileage, and even more recently – your credit score.

Homeowners Insurance: Chosen coverage limits, chosen a deductible, your home’s build year and condition, claims history, home construction type, how close you are to a fire station, and once again, credit history. Discounts are also available for insurance bundles, alarms, and even locks.

Life Insurance: Your age, health, and life expectancy are a large factor in cost, as well as the length of the chosen policy, type of insurance, and overall policy value.

Defining: Deductible

An insurance deductible is the amount of money you pay out of pocket toward a claim. This is deducted from the final payment made by the insurance company.

Defining: Insurance Limit

Your insurance limit is the maximum your insurer will payout on a single claim. Make sure you choose high enough limits to protect you and your assets. Talk with your Centennial Insurance Agent to make sure you are choosing wisely.

If you are in the Southwest Florida area including Fort Myers, Naples, Estero, Bonita Springs, Marco Island, Lehigh Acres, and Cape Coral we would love to see you in our office here locally in Fort Myers. We cover all of Florida by phone and the internet. We are more than happy to do a quote for you with no obligation either online or in person. Give us a call today at (239) 247-5125 or visit us online at https://www.cisinsfl.com/get-a-quote/ to start a customized quote.