Insurance Basics
This financial product protects individuals from financial loss due to accidents, illness, or damage.
What is Insurance?
This covers the damage YOU caused in an accident.
What is Liability?
This percentage of the medical bill, such as 20%, is your share after meeting your deductible.
What is co-insurance?
This insurance valuation method aims to put you back in the exact same financial position you were before a loss, by covering the cost of a brand-new equivalent.
What is Replacement Value?
Maria went to an out-of-network doctor and her insurance paid much less than usual. This happened because her plan uses this type of medical provider system.
What is Network?
This is the maximum amount an insurance company will pay for a covered loss.
What is a Limit?
This covers the costs of treating your injuries regardless whoever’s fault it was.
What is Personal Injury Protection?
A fixed amount you pay for a service
What is co-payment?
This insurance valuation method pays out the cost to replace an item, minus a deduction for its age, wear and tear, and obsolescence.
What is Actual Cash Value?
The amount of money you pay for your insurance
What is Premium?
This required coverage pays for damage you cause to someone else's property
What is Collision?
This group of doctors and hospitals contracted with your insurance plan usually gives you the lowest costs when you stay within it.
What is a Health Plan Network?
This term refers to accidental damage inside your rental unit caused by the renter, not the landlord.
What is accidental damage?
This is what a policyholder files after an accident or loss to request payment from their insurance company
What is a claim?
This coverage protects you if a driver without insurance injures you or damages your vehicle
What is Uninsured Motorist Coverage?
Federal insurance for people 65+ or with certain disabilities
What is Medicare?
This part of renters insurance pays to replace your belongings if they are stolen, damaged by fire, or destroyed in another covered event.
What is personal property coverage?
The amount you pay first before insurance helps cover the rest
What is Deductible?
A factor that often decreases auto insurance rates as drivers gain experience.
What is Age?
Low cost, must stay in-network, need a primary doctor & referals
What is HMO?
This coverage protects you from credit card fraud or stolen identity.
What is identity theft protection?