Insurance Glossary

Understand common insurance terminology.

Deductible

The amount you pay out of pocket before your insurance coverage kicks in.

Premium

The amount you pay for your insurance policy, typically on a monthly or annual basis.

Copay

A fixed amount you pay for a covered health service, usually at the time of service.

Coinsurance

Your share of the costs of a covered service, calculated as a percentage of the allowed amount.

Liability Coverage

Insurance that pays for damage or injuries you cause to others.

Collision Coverage

Insurance that pays for damage to your vehicle from a collision, regardless of fault.

Comprehensive Coverage

Insurance that covers damage to your vehicle from non-collision events like theft, fire, or weather.

Policy Limit

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

Exclusion

Specific conditions or circumstances that are not covered by your insurance policy.

Claim

A formal request to your insurance company for coverage or compensation for a covered loss.

Underwriting

The process insurers use to evaluate risk and determine your premium.

Rider

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