The following terms and their definitions may help you better communicate with local insurance providers. This may mean a better chance that you’ll get the insurance coverage you need and avoid misunderstandings with your insurer.
As always, you deserve to completely understand the agreement into which you’re entering with your local insurance company. If you have questions or need clarification at any point during your interactions with insurance services, ask them for details. Good insurance companies providing auto, life and home insurance should be willing to explain and give details about the insurance plans they offer and the services that best meet your needs.
Insurance policies providing coverage for death, dismemberment, disability, or hospital stays and medical care needed after an accident. Accident coverage may include student accidents, sports accidents, accidents while traveling, and accidental death and dismemberment (AD&D) incidents.
Also known as: accident-only insurance, AD&D, accident insurance coverage
A person who sells, services, or negotiates insurance policies. Insurance agents may work independently or in conjunction with an insurance company.
Also known as: insurance agent
Auto insurance policies protect vehicle owners against the costs associated with auto accidents. This includes vehicle damage, theft, collision and other accident damage, based on the details of the insurance policy. Auto liability insurance protects drivers and car owners against charges of bodily injury or property damage caused by ownership and/or operation of a vehicle.
Also known as: auto liability insurance, auto physical damage insurance, car insurance, automobile liability insurance
An individual who is named as heir or recipients of payouts of life insurance policies and other insurance payments.
Also known as: insurance beneficiary, insurance payout recipient
Insurance coverage in the form of one single policy that covers more than one type of property at the same location or multiple types of property at several locations (including home, business and commercial locations).
Also known as: multi-location insurance, blanket property insurance
bodily injury insurance coverage
Bodily injury insurance coverage pays medical expenses and additional damages for which the insured is liable.
Also known as: bodily injury coverage
Insurance brokers are professionals who earn commissions from the sale of insurance policies. Brokers work for their customers and do not have to sell insurance policies for a specific auto, home or life insurance company.
Also known as: insurance broker, home insurance broker, auto insurance broker, life insurance broker
Liability insurance that covers insurance holders against loss of property, damage and other liability.
When an insured individual makes a claim, it is a request for payment due to loss or accident covered under the policy agreement.
Also known as: insurance claim, life insurance claim, auto insurance claim, car insurance claim, accidental insurance claim, home insurance claim, rental insurance claim
classic car insurance
Classic car insurance and collectible car insurance is for vehicles built before 1979 and/or collectible makes and models. Classic car insurance may have mileage limits (as most aren’t daily drivers). Classic car owners may be asked for proof of the age, condition, current mileage, average miles driven, housing of the vehicle, and other considerations that impact the value of the vehicle. This insurance usually covers collision, damage, theft, vandalism and more.
Also known as: vintage car insurance, limited driver car insurance, classic vehicle insurance
Auto collision insurance is insurance that pays out when your vehicle is involved in a collision with another vehicle, building, telephone pole, or other stationary object. It may also cover car roll-overs. Auto collision insurance payout is often linked to who is at fault for the accident.
Also known as: auto collision insurance, car collision insurance
commercial auto insurance
Insurance coverage for business-owned vehicles that protect the insured against financial loss and legal liability for motor vehicle related injuries, or damage to the property of others caused by accidents arising out of the ownership, maintenance, use, or care-custody & control of a motor vehicle. This includes Commercial Auto Combinations of Business Auto, Garage, Truckers and/or Other Commercial Auto.
Also known as:
comprehensive car insurance
Comprehensive auto insurance covers automobiles and their owners against any damage or loss not related to a collision. This can include vandalism, theft, fire, natural disasters, man-made disasters, falling objects, animal damage and more, depending on the coverage and insurance company.
Also known as: full car insurance,
An insurance policy’s effective date is the day on which an insurance policy goes into force. Effective dates may even have times associated with them, and may not be the exact day and time you sign the paperwork for your policy.
Also known as: insurance effective dates, insurance policy effective date
Homeowners insurance is a type of property insurance that protects against damages or loss to the home or items within the home. It also covers against accidents and damages to visitors and individuals occurring in the home or on the property.
Also known as: home insurance, property insurance, household insurance
A written agreement between you and your auto insurance company that details what the company will cover, contract conditions and provisions and the amount you’ll pay for your coverage.
Also known as: policy, insurance coverage policy
The amount of money insured individuals pay for insurance coverage. Insurance premiums are usually paid on a set schedule. This may be monthly, quarterly, yearly or according to a specific payment plan set up with the insurance company.
Also known as: premium, insurance payment, cost of insurance
Standard car insurance policies don’t cover motorcycles. Instead, motorcycle owners should invest in motorcycle insurance to protect their vehicles. Depending on the policy, this protects against damage, theft, vandalism, collision and more.
Also known as: motorbike insurance, insurance for motorcycle insurance
Named insured is the term for the individual defined as the insured person in the insurance policy contract.
Also known as: insured person, insuree, insured individual, the insured
permanent life insurance
A life insurance policy that remains active for the entire life of the insured individual is a permanent life insurance policy.
Also known as:
Property insurance covers a structure and its contents against damage and theft, including fire, wind, hail, tornado, vandalism, theft and more. Property insurance may be broken down into categories including homeowners insurance, renters insurance, earthquake insurance, flood insurance and more. The type of property insurance you receive is based on needs and the type of property you want to have insured.
Also known as: home insurance, business insurance, homeowners insurance, renters insurance, flood insurance, earthquake insurance, basic property insurance, whole property insurance
Renters insurance is a type of insurance policy that covers renters and provides benefits similar to homeowners insurance policies. However, renters insurance only covers belongings in the structure, rather than the home or structure itself.
Also known as: rental insurance, home renters insurance
term life insurance policies
Term life insurance is a type of life insurance benefit that covers the insured for a specific term—usually 10, 20 or 30 years. If the insured dies during the specified term, the insurance pays out to the beneficiaries. Some term life insurance policies allow for the insured to renew the policy when it expires.
Also known as: term life, term life insurance
whole life insurance policies
Whole life insurance policies are a type of life insurance coverage that pay out a benefit to beneficiaries upon the death of the insured. Whole life insurance also accumulates cash value that can be borrowed against for college tuition, retirement, and other expenses.
Also known as: full life insurance policies
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