NEW TO INSURANCE!!HELP

Question

if someone doesnt have insurance, which is better? primary or excess? why?

Answer 1

Excess means, "more", or "on top of".  Primary means, we pay first.  Excess means, we pay last.  

Some larger businesses like to "self insure" the first $250,000 of any claim - health insurance or workers comp - it saves them MASSIVE money on insurance.  Then the buy an "excess" policy to cover any claim that goes over the $250,000 (or pick your six figure deductible).

So, how do you define "better"?  If you can afford multiple $250,000 deductibles, then the excess is better.   If you can't, then the primary is better.  Or, you can buy both - primary coverage with an excess amount.

Answer 2

I don't understand... Are you looking to purchase insurance?

Primary would be more expensive, as the bigger your excess is the less the premium should be. It depends on the expected frequency of losses, and whether your business is more suspectible to high-severity or low-severity losses.

Answer 3

Is this health insurance?  Or what kind?