Want to Learn The Best Way To Find The Right Insurance Policies ...

by Chris Carbukel

Whether you’re shopping for Car, Home, Health, Life or any Insurance – learn the lingo or you will pay too much and get the wrong coverage. Here are the more common insurance terms to help you get the right insurance.

General terms:

Deductible – Deductibles are used in auto, health and homeowners insurance to reduce the overall cost of insurance by you assuming some of the damages or expenses BEFORE the insurance company pays for the remainder. Usually you choose the amount of the deductible and the higher the amount you choose, the lower your insurance premium.

Premium – the premium is the cost of the insurance. It is how much you or your company pays for the coverage.

Property and Casualty – this identifies a part of the insurance industry that handles impairment to property or individuals hurt in an accident. Auto, householders and commercial liability insurance fall into this category.

Life and Health – This is the other segment of the insurance industry that does not fit under the property and casualty label.

Umbrella Insurance – This is wider insurance coverage than the original fundamental policy. For instance, a householder’s insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.

Automobile Insurance:

Collision – Collision insurance covers the damages to your vehicle from a collision or accident.

Comprehensive – This term also applies to auto insurance and it is that part of your coverage that pays for “non-collision” types of losses like fire, flood, vandalism or theft.

Liability – this is the aspect of your insurance coverage that compensates for losses to a 3rd party like personal injury, property impairment or pain and suffering. Householders policies also usually have liability coverage to protect you from assorted cases of personal injury suits.

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