Insurance Basics
A system where a person pays a company to provide financial protection against unexpected events, like accidents or theft.
What is insurance?
This mandatory coverage in most states pays for the damage you cause to other people's cars or property.
What is liability?
This plan is known for offering more flexibility to see out-of-network doctors for a higher fee.
What is PPO? (Preferred Provider Organization)
This part of the policy protects you if you're found legally responsible for injuries to another person or damage to the property in your rental unit.
What is liability coverage?
This optional coverage helps pay for towing services, a flat tire change, or a battery jump-start if you get stranded on the road.
What is roadside assistance?
The maximum amount of money an insurer will pay for a covered loss or What is a limit claim.
What is limit?
This coverage pays for damage to your own vehicle if you hit another car, a pole, or another object, regardless of fault.
What is collision coverage?
This plan typically requires you to select a Primary Care Physician and get a referral to see a specialist within the network.
What is HMO? (Health Maintenance Organization)
This superior method of reimbursement pay the amount it would cost to buy brand new items of similar quality to replace your damaged belongings without deducting for depreciation.
What is replacement cost coverage?
This coverage can reimburse you for the cost of getting a temporary car while your primary vehicle is in the shop for a covered repair.
A formal request made by a policyholder to their insurance company for payment or compensation under the terms of the policy.
This coverage, often required in "no-fault" states, pays for your own medical expenses and lost wages after an accident, no matter who caused the crash.
What is PIP?
This type of coverage is defined by having significant upfront costs before benefits kick in, and it is often combined with a Health Savings Account.
What is HDHP? (High Deductible Health Plan)
This primary coverage protects attendance belongings, such as furniture, electronics, and clothing from damage or theft.
What is PPC? (Personal Property Coverage)
This coverage helps pay for reasonable medical expenses for you and your passengers after an accident, regardless of who is at fault, and is different from liability coverage.
What is medpay?
The amount of money the insured person must pay regularly to the insurance company in exchange for coverage.
What is premium?
This type of coverage pays for damage to your car caused by things other than a crash, such as theft, vandalism, hail, or hitting a deer.
What is comprehensive coverage?
This plan has no out-of-network coverage except in an emergency, but you usually don't need a PCP referral for in-network specialists.
What is an EPO? (Exclusive Provider Organization)
While renters insurance covers items stolen from your car, it does not cover damage or theft of this item itself.
What is the vehicle? (car/truck)
If your new car is totaled and you owe more on your loan than the car's current actual cash value, this coverage pays the difference to the lender.
What is gap? insurance/coverage
In insurance terms, this is the potential for loss or damage, which is the What is a risk? very thing a policy is designed to protect against.
What is risk?
This coverage protects you and your vehicle if you are in an accident caused by a driver who either has no insurance at all or insufficient coverage to cover the damages.
What is uninsured/underinsured motorist coverage?
This plan blends aspects of the PPO and HMO models and often requires a referral for out-of-network care.
What is POS? (Point of Service)
Standard renters insurance policies do not provide coverage for damage caused by these two natural disasters.
What are floods and earthquakes?
This coverage is an endorsement that pays the cost to replace your What is new car totaled vehicle with a brand-new one of the same make and model, without subtracting for depreciation.