5 Answers to Your Most Common Insurance Questions [Part 2]

Insurance can still be difficult to understand. And after sharing some of our top frequently asked insurance questions, there were still a few out there that got people scratching their heads. So we decided it was best to tackle those as well. Let us help you. At IBC we have professionals ready to serve you and answer your questions, anytime. Read on to hear more questions and answers by each of our five departments.

Employee Benefits

What is an Out of Pocket Maximum and how does it work?

Out of Pocket costs or Out of Pocket Maximums are the amounts you must pay for your services each year.  This can include deductibles, copayments, and coinsurance amounts that you owe. Think of your Out of Pocket Maximum as your “worst case scenario.” Many Out of Pocket Maximums are calendar year, meaning your maximum costs run January 1st through December 31st. However some plan years are different from a calendar year so make sure you know what your Out of Pocket Maximum is and when it starts over.

Personal and Commercial Insurance

If I rent a vehicle, does my auto insurance cover me?

If your regular auto insurance covers collision damage to your insured car, it also covers damage to a short-term rental. But this coverage is generally limited to driving in the U.S. and maybe Canada. Even if coverage is provided, it doesn’t necessarily mean every exposure is included. 

For example: Uninsured/underinsured motorists coverage and emergency roadside assistance may not be available. If an accident occurs in a rental car, the value of the vehicle may be reduced even after being repaired. This is referred to as diminished value and is not covered by all policies.

Rental car companies may charge for “loss of use” which is the potential revenue lost while the car is out of service being repaired, regardless of how many other vehicles the rental company may have. This “loss of use” is typically calculated at the full retail rate of the car, which could become a significant exposure.

Many credit cards provide collision coverage for car rentals, provided the client uses the card to secure the rental. However, note that this typical credit card benefit does not cover diminished value or administrative costs. Coverage on most cards is secondary, meaning the card picks up only what a policyholder can’t first recover from their own insurance. Also, the insured still has to pay the rental company up front, then file for reimbursement from the card issuer.

Benefits Administration

How does the Prepaid Benefit card work?

The value of the participant’s account(s) contribution is stored on the benefits debit card. When participants have eligible expenses at a business that accepts benefit debit cards, they simply use their card. The amount of the eligible purchases will be deducted automatically from their account and the pre-tax dollars will be electronically transferred to the provider/merchant for immediate payment. Participants can visit their personal Account Summary page here to view their account activity and current balance. Participants should always know their account balance before making a purchase with the card.

Preventive Health

What’s the benefit of a wellness program for an employer?

We all know that a healthier employee is a more productive employee, but how does wellness tie in? Employees want to feel like their company cares about them, and by providing wellness services or a wellness program, it does just that. The two main goals of a wellness program are to sustain or improve the overall health and well-being of employees, and to help improve the bottom line when it comes to saving a company’s dollars on overall benefit/insurance costs. Healthier employees cost a company less, so if a wellness program can help improve an individual’s health it will save the company in the long run!

Risk Management

What is your podcast “Evil Safety Dudes” all about and where can I find it?

Our podcast goes into detail about all things safety. We want to provide a free resource where you can learn how to keep you and your employees safe. We share stories about past accidents so you can see what the consequences are, what they failed to do, and how it is preventable. Our goal is to keep Siouxland safe. We release a new episode every Monday morning on Spotify, Apple, and Google podcasts. If you want to listen to past episodes, listen here.

At IBC, we are here to serve you at the highest level. Have a question, always reach out to us at 712-277-2424 or fill out this form. And like us on Facebook for more information and answers to the most frequently asked questions.