Insurance Glossary

The amount you pay out of pocket before insurance kicks in

The regular payment you make to keep your insurance policy active

Coverage that pays for damage or injury you cause to others

Pays to repair or replace your car after a collision, regardless of fault

Covers damage to your car from non-collision events like theft, weather, or animals

Protects you when an uninsured driver causes an accident

Covers the gap when the at-fault driver's insurance isn't enough

Covers medical expenses for you and passengers regardless of who caused the accident

Pays for injuries you cause to others in an accident

Pays for damage you cause to someone else's property

Expenses you pay yourself that are not covered by insurance

A fixed amount you pay each time you use a medical service

The percentage of costs you share with your insurer after meeting your deductible

Specific situations or conditions that your insurance policy does not cover

An add-on to your insurance policy that provides additional coverage

A modification to your existing policy that changes your coverage

A formal request to your insurance company for payment after a loss

The person who owns the insurance policy and pays the premium

The person designated to receive insurance benefits or payouts

The maximum amount your insurance company will pay for a covered claim

Extra liability coverage that goes beyond the limits of your regular policies

Covers the difference between what you owe on your car and its current value

A certificate proving you have minimum liability insurance, required for high-risk drivers

An insurance system where each driver's own insurer pays for their injuries, regardless of fault

A system where the at-fault driver is responsible for paying damages

Covers the structure of your home against damage from covered perils

Covers your belongings inside the home against damage or theft

Pays for additional living expenses if your home becomes uninhabitable

Pays to replace damaged items with new ones of similar quality, without depreciation

Pays the current value of damaged items, accounting for depreciation

Insurance carried by a homeowners association to cover common areas

A separate policy that covers damage from flooding, not included in standard home insurance

A separate policy covering damage from earthquakes, not included in standard home insurance

Covers a renter's personal belongings and liability, not the building itself

A comprehensive policy that protects homeowners against damage, theft, and liability