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What is the insurance process?

The first thing that occurs is that there's something that happens that results in a loss. So that means the policyholder will have to make a claim to the insurance organization And the claim is paperwork submitted to the insurance organization describing what happened. Nowadays they have a lot of claim apps. So you can get on your phone like let's say you get into an accident and you have. Think Allstate does it you can actually go to all states app and file a claim. So on that app you have to. As if it was paperwork fill out all of your personal information. Oftentimes it'll allow you to take pictures with your phone and upload them to the claim. But in either case a claim is only needed whenever something happens.

So you want to fill out a claimed every month or every year but it's only if there's an accident. So once they get the claim they determine if the event is covered by the policy. So they have to check out the policy coverage. And if it is then oftentimes a policy holder will pay what's called a deductible. So a deductible. Is money that you pay out of pocket. So in other words you pay in addition to everything else before the insurance chooses to pay for anything. So the deductible is what you pay before insurance kicks in If the remaining amount could be also charged with to you if you have something called coinsurance so Coinsurance is the amount of money after you pay the deductible that is paid jointly between you and your insurance company Coinsurance is typically with health insurance. Meaning you've reached you've paid your deductible.

Once you've hit your deductible you've paid off your deductible you might still have coinsurance on top of it and that means you're paying a percentage and your insurance company is paying a percentage of whatever is left in the payments whether it's to a hospital or to a car company or whatever the case may be.