Like in any industry, the world of insurance uses its own jargon. They have it for a practical reason, since it makes it easy for professionals in that industry to understand each other. This doesn't make it any easier for you to understand! Some terms tend to confuse, and sometimes even deter you altogether from pushing through with their insurance application.
Here at Rate Detective, our goal is to help make it easy for regular people like you to apply for insurance. That is why we are going to share with you some of the most common insurance-related terms and what they mean. That way, you will be able to easily understand what these terms are and be able to quickly make a decision if a policy is for you or not.
Why you need to know this: some insurance companies might refuse to cover you if you have a high-risk job or hobby, such as covering news in war zones, or sky diving. Meanwhile, those companies that would opt to insure you would likely charge you higher premiums due to occupational hazards associated with your work.
Why you need to know this: different insurance companies have different policies on this. Some may refuse to cover a particular condition altogether, while others could provide coverage granted that it has been treated and/or that treatments have already stopped.
Why you need to know this: this is important when deciding which one is the best option for you. Stepped premiums can cost higher than level ones, but there's always the potential for you to pay lower premiums in the long run. For example, you might pay higher premiums while you're working as a miner in an isolated location, which could then be reduced once you take on a job at the head office of that miner. Meanwhile, you would be paying the same amount regardless of the position you hold when you choose to pay level premiums.
These are just some of the most common terms used in the insurance industry. If you have more questions about getting the type of insurance that's right for you, consult the consultants at Rate Detective. They will provide you with advice as well as a comparison of quotes of Australia's top 9 insurance companies.