I was wondering your opinion on the necessity of deductibles and coinsurance.
Total Comments: 6
Posted: Sat Sep 19, 2009 04:15 am Post Subject:
Deductible and coinsurance are both necessary. You and your insurer agree up front the amount or percentage of risk involved. Co-insurance also has a stop loss clause that lets you pay your share of the co-insurance up to a certain limit for that year after which the insurance company bears 100% of the claim amount.Your deductible would apply for all other services not covered by the policy. You are agreeing to 'kick" start the process.
Posted: Sat Sep 19, 2009 04:29 am Post Subject:
Your posting in the Auto forum... co-insurance?
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
Posted: Sat Sep 19, 2009 04:19 pm Post Subject:
tcope,
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
That's an interesting view, but really do you think anyone would go through the Hassle of filing a claim for One Dollar? [with the exception of someone doing that just to see what would happen]
But you are right, it saves the insurer's many $$. And as well... that $1000.oo deductible saves insurer's many $$ also. Like when they have a $1200.oo claim and decide that $200.oo Check isn't worth the hassle either. Huummm, both ways the insurer wins. coincidence??
Anyway, I have a 27 year old Antique with Comp & Collision coverage, with NO Deductible. Trust me I won't be filing any claims for a Dollar or even $50.oo.
On another thought. Does any insurer offer a Minimum Claim Policy? This type policy would eliminate nuisance claims yet if the amount is above the minimum it would pay the full amount.
As an example: if one had a 500.oo Minimum a claim for less than that would not be accepted. But if a claim for $500.oo or more were submitted the full amount would be paid. [ including the first $500 ]
I bet a lot of people would like an option like that. It could lower rates by stopping nuisance claims & save consumer's from the dreadful task of squeezing that $500.oo out of an already tight budget.
Just wondering.
Posted: Sat Sep 19, 2009 04:36 pm Post Subject:
(The previous post was me thinking I was Signed In)
tcope,
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
That's an interesting view, but really do you think anyone would go through the Hassle of filing a claim for One Dollar? [with the exception of someone doing that just to see what would happen]
But you are right, it saves the insurer's many $$. And as well... that $1000.oo deductible saves insurer's many $$ also. Like when they have a $1200.oo claim and decide that $200.oo Check isn't worth the hassle either. Huummm, both ways the insurer wins. coincidence??
Anyway, I have a 27 year old Antique with Comp & Collision coverage, with NO Deductible. Trust me I won't be filing any claims for a Dollar or even $50.oo.
On another thought. Does any insurer offer a Minimum Claim Policy? This type policy would eliminate nuisance claims yet if the amount is above the minimum it would pay the full amount.
As an example: if one had a 500.oo Minimum a claim for less than that would not be accepted. But if a claim for $500.oo or more were submitted the full amount would be paid. [ including the first $500 ]
I bet a lot of people would like an option like that. It could lower rates by stopping nuisance claims & save consumer's from the dreadful task of squeezing that $500.oo out of an already tight budget.
Just wondering.
Posted: Sun Sep 20, 2009 06:56 pm Post Subject:
Hello,
A deductible is the first portion of any claim that must be borne by the insured.Deductibles and co-insurance is very important, especially to the insurer because of two main reasons. The first is that it limits the insurers exposure to paying small but expensive claims. Secondly, they are meant to instill loss prevention attitude in the insureds.If the insured knows he or she will bear part of every claim, he or she will try to prevent the claim.
Posted: Mon Sep 21, 2009 11:57 am Post Subject:
Hi, I've come across a link in this site wherein the co-insurance cap has been explained properly-
http://www.ampminsure.org/feedback/coinsurance-stoploss.html Steven
Posted: Sat Sep 19, 2009 04:15 am Post Subject:
Deductible and coinsurance are both necessary. You and your insurer agree up front the amount or percentage of risk involved. Co-insurance also has a stop loss clause that lets you pay your share of the co-insurance up to a certain limit for that year after which the insurance company bears 100% of the claim amount.Your deductible would apply for all other services not covered by the policy. You are agreeing to 'kick" start the process.
Posted: Sat Sep 19, 2009 04:29 am Post Subject:
Your posting in the Auto forum... co-insurance?
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
Posted: Sat Sep 19, 2009 04:19 pm Post Subject:
tcope,
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
That's an interesting view, but really do you think anyone would go through the Hassle of filing a claim for One Dollar? [with the exception of someone doing that just to see what would happen]
But you are right, it saves the insurer's many $$. And as well... that $1000.oo deductible saves insurer's many $$ also. Like when they have a $1200.oo claim and decide that $200.oo Check isn't worth the hassle either. Huummm, both ways the insurer wins. coincidence??
Anyway, I have a 27 year old Antique with Comp & Collision coverage, with NO Deductible. Trust me I won't be filing any claims for a Dollar or even $50.oo.
On another thought. Does any insurer offer a Minimum Claim Policy? This type policy would eliminate nuisance claims yet if the amount is above the minimum it would pay the full amount.
As an example: if one had a 500.oo Minimum a claim for less than that would not be accepted. But if a claim for $500.oo or more were submitted the full amount would be paid. [ including the first $500 ]
I bet a lot of people would like an option like that. It could lower rates by stopping nuisance claims & save consumer's from the dreadful task of squeezing that $500.oo out of an already tight budget.
Just wondering.
Posted: Sat Sep 19, 2009 04:36 pm Post Subject:
(The previous post was me thinking I was Signed In)
tcope,
Deductibles are very much needed as they _greatly_ limit an insurance companies exposure. With out a deductible an insurance could file a claim for anything. they could suffer a $1 loss and could file a claim. It costs a lot of money to process a claim.
That's an interesting view, but really do you think anyone would go through the Hassle of filing a claim for One Dollar? [with the exception of someone doing that just to see what would happen]
But you are right, it saves the insurer's many $$. And as well... that $1000.oo deductible saves insurer's many $$ also. Like when they have a $1200.oo claim and decide that $200.oo Check isn't worth the hassle either. Huummm, both ways the insurer wins. coincidence??
Anyway, I have a 27 year old Antique with Comp & Collision coverage, with NO Deductible. Trust me I won't be filing any claims for a Dollar or even $50.oo.
On another thought. Does any insurer offer a Minimum Claim Policy? This type policy would eliminate nuisance claims yet if the amount is above the minimum it would pay the full amount.
As an example: if one had a 500.oo Minimum a claim for less than that would not be accepted. But if a claim for $500.oo or more were submitted the full amount would be paid. [ including the first $500 ]
I bet a lot of people would like an option like that. It could lower rates by stopping nuisance claims & save consumer's from the dreadful task of squeezing that $500.oo out of an already tight budget.
Just wondering.
Posted: Sun Sep 20, 2009 06:56 pm Post Subject:
Hello,
A deductible is the first portion of any claim that must be borne by the insured.Deductibles and co-insurance is very important, especially to the insurer because of two main reasons. The first is that it limits the insurers exposure to paying small but expensive claims. Secondly, they are meant to instill loss prevention attitude in the insureds.If the insured knows he or she will bear part of every claim, he or she will try to prevent the claim.
Posted: Mon Sep 21, 2009 11:57 am Post Subject:
Hi, I've come across a link in this site wherein the co-insurance cap has been explained properly-
http://www.ampminsure.org/feedback/coinsurance-stoploss.html Steven
Add your comment