15 Mar Common Insurance Terms You Need to Know
Essential terms that you should know to better understand your policy.
The insurance industry is very well known to be filled with a comprehensive glossary of terms and some of them may be difficult to understand. However, it is important that you understand common terms to that you know you’re buying the right policy and that you understand your policy. Check out this list to help you better comprehend the puzzling world of insurance.
Refers to the people who are covered by the policy that isn’t the policyholder. If your car collides with somebody else, and you have third-party coverage, your insurance will pay for the repairs to the person whose car you just totaled.
This is the actual cost of your insurance plan. Keep in mind that the higher the premium, the higher your coverage and thus, the less you will have to pay in medical bills throughout the year.
The amount that you must pay out of your own pocket before the insurance company will begin paying towards any covered expenses.
The amount of time from the effective date of the policy that comprises one full year. For example, if the effective date begins February 21, 2018, the coverage will end at midnight, February 21, 2019.
A formal written statement by the insurance company to the insured amending and modifying coverage, e.g., adding or excluding coverage.