Learn the Lingo: Common Insurance Terms Everyone Should Know
“When in Rome, do as the Romans do.” This often-quoted phrase can also be applied to the insurance world, more specifically whenever you need to evaluate your insurance needs or take out a new policy. Often times a visit with an insurance agent can feel overwhelming because they’re using terms you don’t understand.
Southern Risk Services wants to help out those that don’t quite get the insurance lingo. Take a look at some of the most common insurance terms, make some flashcards and study up so you can impress your insurance agent the next time you meet.
Deductible- the amount you agree to pay before your insurance covers a loss. Ex: a car accident causes $1000 worth of damage, and your deductible is $300. You pay $300 and your insurance pays the remaining $700.
Premium- the cost charged by your insurance company to be covered.
Claim- a request by you (or a third party from another insurance company) for losses to be covered by your insurance.
Collision coverage- covers damages to your vehicle from collisions with other cars or objects.
Liability coverage (personal)- covers any bodily injury or property damage to those you are liable for (spouse, children, etc.). Comprehensive coverage- covers damages to your vehicle from non-collision incidents such as vandalism, weather events, theft or contact with animals.
Umbrella policy- an additional layer of protection in the event of a serious accident on your property or auto accident; helps if you are liable for more than current coverage limits.
If you think we’ve missed some important ones, let us know and we’ll add them. Half the battle to knowing how well you are covered is understanding every aspect of your policy.
At Southern Risk Services, we help you understand your policy so you leave knowing exactly how you are covered. If you need help with your insurance needs, don’t hesitate to get in touch with us today!