What do Muggles Need to know about Insurance?
Deductible-A deductible is the insured responsibility when filing a claim it is similar to a co-pay for health insurance for example if your deductible is $500 and you have a claim for running into a Hufflepuff that results in Damage to your vehicle of $9,000 the insurance company will pay $8,500 and your responsibility will be $500 which is your deductible
Why does a not at fault accident effect my Insurance?
Insurance companies use a database called Lexis Nexus and pull reports call Clue reports as tools to determine your Insurance rates. Remember a Perfect will always have a better rate than a muggle. Legally someone with no claims on their record all things being equal if you live in the same zip code drive the same vehicle with the same risk profile with 0 claims cannot pay the same rate as their counterpart with two not at fault claims! although not at fault claims can have an adverse effect on your Insurance rate they carry far less points and impact that at fault claims. In most states not at fault claims will stop effecting your rates after 3 years where as At fault claims will stop effecting your after 5 years.
What is a Grace Period in Insurance
Many Muggles slow to pay their bill ask about a grace period when it comes to Insurance. Insurance companies understand that life happens after all who’s Owl hasn’t been slow to deliver a letter or in this case a payment. Some insurance will take this into consideration and institute a grace period in which your policy won’t be canceled and will allow for a payment to be made after the due date has passed.
What is Umbrella Insurance
If you are successful in life and win enough Quidditch games you may amass some fortune in life and nice things. Umbrella Insurance is an insurance policy that you can purchase to protect your Great house and underlying assets if You know who sues you for liability and threatens to expel you from Hogwarts like Rubeus Hagrid. If you are top of your class and a high net worth individual many sinister people may target you for frivolous lawsuits Umbrella insurance protects you for millions of Galleons for just a few hundred silver Sickles a year.
