Health insurance is one of the most important insurance type a person should have. It is really important decision since it involves health issues and money saving, possibly. Enough said, these are things you should avoid when you are about to purchase health insurance.

Give Too Much Attention to Premium And Deductible

If you are planning to purchase health insurance, please pay attention to additional coverage and cost. Do not stuck on premium and deductible only. It is understandable if you only look on premium and deductible to arrange your budget, but you also need to consider other cost and possible situations as well. 

Get Over Insured

Something that attached with word "over" is not good or even worst. Over insured is not good for your financial's health. Sure you will get the best and complete coverage, but you don't need pay too much when not needed. If you rarely seeing doctor, purchase health insurance with lower premium. 

Not Reading The Policy's Print Thoroughly

Insurance contract usually printed in multi-page and people usually did not read it thoroughly. You need to read it carefully to avoid coverage miscalculations. 

Overconfident on Good Health Record

Why I have to waste my money for paying health insurance premiums while I have good health, strong immunity, never visiting doctor and so on? Get rid this mindset. It is still important to be covered to avoid unexpected life events. Who would know that maybe someday (I hope not) you are injured in an accident. You can not be sure that you will be absolutely healthy for the rest of your life. If paying premium is a huge burden for you, buy a most basic plan. It's better to prevent than sorry.

Purchase From A Provider Without Comparing

People often purchase health insurance from the very first provider they meet which comply their needs. This is not exactly wrong, but you will get the best coverage with best price if you comparing multiple insurance companies. They offer different coverage and prices from each other. You don't have to visit their office one by one. You can get quotes online from their site without buying their coverage and start comparing from those quotes. Unless you want specific explanations, then you need to visit their office or contact their agent. 

Not everyone has health insurance, especially in the United States. Although the number of uninsured has dropped since the implementation of Affordable Care Act (ACA) which giving subsidies on healthcare plan, many Americans still choose not to apply or having healthcare plan. Many citizens are not qualified for healthcare subsidies, although many others are qualified, they opt to not participate in government healthcare plan. Moreover, some employers change their benefit program which cause financial difficulties for their employees. In the end, many people did not think health insurance as their needs. 

There are many reasons why they did not have health insurance, such as:

There is indeed a risk (or more) for not having health insurance. The obvious risk is financial difficulties once the uninsured need medical assistance with expensive cost. Another risks are unable to have some types of medical services and have to pay tax penalties.Having health coverage give advantage for people who want to access preventive care for free. Since ACA requires many preventive services to be covered in insurance policies. Preventives care is important to detect illness early before it can develop into critical problem. It also increases the success treatment probability. 

If you have no health insurance coverage, you need to pay your medical expenses with you own pocket. Sure you assume you will not require medical assistance for years, but what if you need to be hospitalized because of accident or sudden ill? The medical expenses is no joke. Having no health coverage can make you fall in debt or even bankruptcy. In addition, you will get tax penalty, assuming you relatively healthy. You might have to pay penalty as high as health insurance premium. 

When your insured car is damaged from an accident, the insurance company will pay the car's value, in other words the will pay their own "estimated value". Although you are free to use the money, whether using it purchase a new one or paid the car's installment, most people find it frustrating that insurance company usually underestimate your car value. They often lower the car's value than you expected, moreover the amount is not enough to purchase an equal replacement. For several person, the amount is not even enough to pay the car's installment. We all know that car repair cost is expensive let alone buying a new car.

Most of car insurance customers have no idea how the insurance companies value their cars. The insurance companies use esoteric method, refer to abstract data, and it's absolutely secret. They will be careful as possible not to reveal their method. Since they are not non-profit company, it is understandable. However, all insurance companies use a basic method to appraise your vehicle, you can use this for your consideration to negotiate with the insurance company.

The Valuation Process

Insurance company will send an adjuster to inspect the damage when you report a claim over car accident. What is an adjuster? Adjuster is an agent of insurance claims who will evaluating the insurance claim to determine the insurance company's liability under the terms of an owner's policy. The adjuster will determine whether the vehicle classify as "beyond repair". Even the vehicle can be fixed, the insurance company might consider it as wreck, if the repair cost is more than 60 to 70% of its value. Then, the adjuster perform an value appraisal but the damage will not be considered. The appraisal will be used to determine the estimate cash to offer for the vehicle. 

The insurance company also hire a third-party appraiser to determine their own estimate value of the vehicle. The purpose of hiring third-party is to minimize the errors and double-checking the estimated value by using different valuation methodology. At last, the insurance company considers its own appraisal and the third-party's appraisal before making the offer for its customers.

Actual Cash Value and Replacement Cost

One thing that people have to know is a big gap between insurance company's estimated value of vehicle and the amount of purchasing equal replacement. The insurance company use the actual cash value as their reference in giving offer. Assuming the accident did not happen, the company determines customers will pay for the car. The cash value include depreciation, mechanical problems, supply and demand in your area, and so on. Therefore, the actual cash value will be lower than the customer paid even the car is new and driven a year before the accident. The amount of actual cash value offer is also less than the replacement cost. Policyholder can purchasing car insurance that pays replacement cost. The monthly premium surely will be higher than the common car insurance.