What Types of Insurance Are Available?

Nicholson Insurance is a way to protect yourself and your family against the risk of unforeseen events. It can help you mitigate financial risks and debts that may arise from such unfortunate situations like death, medical emergencies or damage to your car or property.


Insurance offers peace of mind by shifting the burden of these financial costs to a third party, in exchange for a regular fee called premiums.

Life insurance is an agreement between you, the policy holder, and the insurer or assurer. In exchange for premiums you pay over a set period, the insurer promises to pay a lump sum amount on your death or after a specified event such as terminal illness. You may also choose to include a rider to cover you against critical or chronic illness during your lifetime. The term of the policy is often determined by your age and can be extended under certain circumstances.

Most policies do not cover suicide or homicide unless they occur within the first two years of the policy or if you have made a material misrepresentation on your application. Some policies provide access to a portion of the death benefit under certain conditions while you are still alive, this is called an accelerated death benefit.

Auto Insurance

Auto insurance is required in most states, and it provides financial protection if you are involved in an accident. In exchange for a premium, the insurance company agrees to pay for your losses as outlined in the policy contract. There are several types of auto insurance to choose from, including bodily injury and property damage liability coverage and collision coverage. Medical payments or personal injury protection (PIP) is also available, and it pays for your medical expenses if you are injured in an accident, regardless of who was at fault.

The declarations page of an auto insurance policy contains important information about the policy, including the insurer, your name and address, the policy number, the effective and expiration dates, the amount and type of coverage, the deductibles, and the vehicle(s) insured. It is a legal document and should be kept in the vehicle at all times.

Collision coverage pays to repair your car after a collision with another vehicle or an object. It does not cover damage caused by rolling over or other events, such as fire, theft, vandalism, hitting a deer or other animal, or natural disasters. Comprehensive coverage pays to repair or replace your vehicle if it is damaged by something other than a collision with another vehicle or an object, such as theft, weather, and certain natural disasters. It is required if you lease or finance your vehicle.

Rental reimbursement coverage pays to rent a car while yours is being repaired under collision or comprehensive coverage. It typically has a daily limit and is subject to a deductible. Uninsured/underinsured motorist coverage is optional, but it may be worth considering. It pays for your injuries and those of family members who live in the same household, as well as those of passengers in your vehicle, if they are injured by an uninsured or hit-and-run driver who does not have enough liability insurance to pay your damages.

Credit history and driving record are also factors that influence your premium. Drivers with poor credit or a history of accidents and moving violations will generally pay higher rates than drivers with clean records. However, some companies provide discounts for safe drivers who take a defensive driving course.

Home Insurance

Homeowners insurance offers financial protection for your house and belongings against disasters like fires, storm damage or theft. It can also reimburse you for losses that occur if you are held responsible for someone else’s injury or property damage on your property. Most standard home insurance policies provide dwelling coverage, personal property coverage and additional living expense coverage, along with liability coverage for accidents that happen on your property. Separate policies may be available for flood and earthquake damage.

There are many different options when it comes to buying home insurance, and the cost can vary widely depending on your specific policy and coverage levels. For example, the type of construction of your home can affect the premium because some materials are more resistant to certain types of damage than others. The location of your home can impact the premium as well, because some areas are more susceptible to natural disasters than others. And finally, your credit score can impact the cost because insurers consider borrowers with lower scores to be at higher risk of filing claims.

During the home insurance quote process, it’s important to ask about discounts that you may be eligible for. These can include savings for things like home alarm systems, bundling policies and being claims-free.

Another factor that impacts the cost of home insurance is the deductible amount, which is the amount you agree to pay out of pocket when making a claim. Choosing a higher deductible will usually reduce the premium because you’re taking on more financial responsibility, but it will come with a tradeoff — if you have a large enough deductible, your insurance company will cover much less of a loss. An experienced insurance broker can help you decide which option is best for your situation.

Health Insurance

Health insurance is a type of protection that pays for some or all of the costs associated with medical care. It can take the form of private insurance purchased individually or through an employer, or it can be a government-sponsored program like Medicare or the Children’s Health Insurance Program. Health insurance is designed to protect against large, unexpected medical expenses, and it is most often paid for through a premium, which is typically paid monthly.

In-Network Provider – A health care provider that is part of an insurer’s network has agreed to accept rates that are usually less than the “usual, customary and reasonable” charges for a service that a plan member would pay for out-of-network services. In-network providers are also more likely to be covered by the plan’s out-of-pocket maximum.

Out-of-Pocket Limit – The most that a plan member must pay in a year for health care expenses, excluding the premium and balance-billed charges. This is also referred to as the deductible.

The type of coverage and cost details are spelled out in a policy, which is a document that describes the terms of the agreement between an insurer and a customer (or, for government-sponsored programs, the sponsor). In the US, insurance regulation is at both the state and federal level. The states regulate small group and individual/family coverage, while the federal government oversees regulations pertaining to Medicare and self-insured employer groups (including those who use the Employee Retirement Income Security Act (ERISA) to manage their own health benefits).