the insurance charge me again. I know on medical insurance once the deductible is met in same year they pay the full claim
Total Comments: 5
Posted: Thu Oct 28, 2010 11:13 pm Post Subject:
Auto insurance deductible is different then health insurance... the deductible applies _per occurance_ on the auto policy.
Posted: Fri Oct 29, 2010 09:15 am Post Subject:
I've never got a thorough explanation regarding this. Is it due to the fact that we have more number of auto insurance claims filed than health insurance claims?
Posted: Fri Oct 29, 2010 11:14 am Post Subject:
Rupert, even some health insurance is available with a "per occurrence" deductible. But in auto insurance, homeowner's, commercial liability, and most other policies, it would be foolish for an insurance company to offer an "annual" deductible . . . it could invite nearly unlimited claims with minimal financial participation of the insured.
Posted: Fri Oct 29, 2010 07:30 pm Post Subject:
Well, it's actually spelled out in the policy. But also its the nature of the insurance. Property insurance goes back to the days when ships carried goods. The polices were designed to address just one larger loss... such as a ship sinking. They were not designed to address someone dropping one item over-board. So deductibles were added to remove the risk of very small (and numerous) losses. Health insurance is different. Traditionally it did have a deductible that a person needed to meet but then it covered 80% of all bills. The risk and what is being insured is completely different. If I get a cold, it gets better but then I get a cold again 2 weeks later, is that the same illness or something different? No way to tell. Health carriers can still eliminate a lot of exposure by not having to pay for people who just go to the doctor once or twice so they still had deductibles. It lowered the exposure a lot so premiums could be lowered. Of course things like HMOs were then developed with the thought that it was cheaper to prevent illnesses by covering certain things at 100% or with just a low co-pay. This would save money in the long run. Of course now, health insurance is so screwed up you might as well just toss everything out. :D
Posted: Sat Oct 30, 2010 12:20 am Post Subject: Car Insurance
Car Insurance is different from health insurance! what we can say???
Posted: Thu Oct 28, 2010 11:13 pm Post Subject:
Auto insurance deductible is different then health insurance... the deductible applies _per occurance_ on the auto policy.
Posted: Fri Oct 29, 2010 09:15 am Post Subject:
I've never got a thorough explanation regarding this. Is it due to the fact that we have more number of auto insurance claims filed than health insurance claims?
Posted: Fri Oct 29, 2010 11:14 am Post Subject:
Rupert, even some health insurance is available with a "per occurrence" deductible. But in auto insurance, homeowner's, commercial liability, and most other policies, it would be foolish for an insurance company to offer an "annual" deductible . . . it could invite nearly unlimited claims with minimal financial participation of the insured.
Posted: Fri Oct 29, 2010 07:30 pm Post Subject:
Well, it's actually spelled out in the policy. But also its the nature of the insurance. Property insurance goes back to the days when ships carried goods. The polices were designed to address just one larger loss... such as a ship sinking. They were not designed to address someone dropping one item over-board. So deductibles were added to remove the risk of very small (and numerous) losses. Health insurance is different. Traditionally it did have a deductible that a person needed to meet but then it covered 80% of all bills. The risk and what is being insured is completely different. If I get a cold, it gets better but then I get a cold again 2 weeks later, is that the same illness or something different? No way to tell. Health carriers can still eliminate a lot of exposure by not having to pay for people who just go to the doctor once or twice so they still had deductibles. It lowered the exposure a lot so premiums could be lowered. Of course things like HMOs were then developed with the thought that it was cheaper to prevent illnesses by covering certain things at 100% or with just a low co-pay. This would save money in the long run. Of course now, health insurance is so screwed up you might as well just toss everything out. :D
Posted: Sat Oct 30, 2010 12:20 am Post Subject: Car Insurance
Car Insurance is different from health insurance! what we can say???
Add your comment