At the point when you have a misfortune, for example, a fender bender or house fire, you will summon your insurance agency right and let them know.
They will keep track of your claim and investigate it to determine what took place and how you are covered.
If they determine that you have a covered loss, they may send a check to you or, in the case of a car accident, to the repair shop. Your loss will be the amount of the check, less your deductible.
That will come from your own pocket.
When you’ve been paying for insurance for a long time, you might start to wonder why you’ve been paying so much when there hasn’t been a claim.
When there hasn’t been a claim, some people may even believe they should get their money back. This is not how things work. Your money is saved by insurance companies so that they can pay out claims.
“Shared risk” is the idea behind this. It is anticipated that claims payouts will eventually be lower than premiums collected. You might feel like you’re tossing cash through the window assuming you never record a case, however taking care of piece of brain that you’re if you truly do experience a huge misfortune, can be extremely valuable.
