Insurance Basics
This is the monthly bill you pay to have insurance.
What is a premium?
This coverage pays for damage to other people's cars or property if an accident is your fault.
What is liability coverage?
A small, fixed amount you pay for a doctor's visit or prescription when you receive the service.
What is a copay (or copayment)?
This coverage pays to replace your TV, clothes, and furniture if they are stolen or burn in a fire.
What is personal property coverage?
In auto insurance, this specific type of event might be considered a wild card because you can't predict it, such as hail damage or theft
What is a comprehensive claim (or a non-collision claim)?
The amount you must pay yourself before your insurance starts covering costs.
What is a deductible?
This coverage fixes the damage to your own car if you hit another car or object.
What is collision coverage?
The specific clinics and hospitals your health plan has agreed to work with at a discount.
What is a provider network?
Renters insurance covers your stuff, but it generally does notcover damage to this large, permanent part of the property.
What is the building (or the structure)?
This term describes an unexpected and unplanned event that happens by chance.
What is an accident?
The main reason you buy insurance is to manage this unexpected risk.
What is risk (or a covered loss)?
This common auto insurance term covers damages to your car from things like hail, theft, or hitting a deer.
What is comprehensive coverage?
This is the word for the percentage you still owe for a medical bill after you've paid your deductible.
What is coinsurance?
This section pays for a hotel room or temporary apartment if you can't live in your rental unit after a fire or flood.
What is additional living expenses (ALE) coverage?
This document provides the official rules and information for your health coverage, sometimes referred to as the wild card guide
What is the policy (or plan document)?
A formal paper that explains what your insurance covers and does not cover.
What is a policy?
What is one thing that legally does not affect your premium: your car's color, your age, or your driving record.
What is the color of my car?
A common plan type where you must pick one doctor to manage all your care and provide referrals to specialists.
What is an HMO (Health Maintenance Organization)?
This coverage protects you financially if a visitor slips in your apartment and sues you for their injury.
What is liability coverage?
This wild card term refers to how often your car insurance payment is due.
What is a payment frequency (or billing cycle)?
The most money the insurance company will ever pay out for one incident.
What is a policy limit (or coverage limit)?
This is the official card you carry that proves you have insurance coverage.
What is an insurance ID card?
The government insurance program mainly for people over age 65.
What is Medicare?
Landlords often ask new tenants to purchase this specific type of insurance policy.
What is renters insurance?
This term refers to the process of asking the insurance company to pay for a covered loss.
What is filing a claim?