Insurance Terms and Definitions

Front

Premium

Back

The amount of money you pay for your car insurance.

Front

Deductible

Back

The amount of money you pay out of your own pockets before insurance will pay the rest.

Front

Coverage Limit

Back

The amount of money your insurance company will pay for a claim.

Front

Liability Coverage

Back

Insurance that pays for other people’s injuries or property damage if you’re the cause of the accident.

Front

Dwelling Coverage

Back

Protection for the physical structure of your vehicle if it’s damaged by things out of your control.

Front

Personal Property Coverage

Back

Insurance that helps you pay to repair/replace your belongings if they're damaged or stolen in a covered event.

Front

Additional Living Expenses (ALE)

Back

Money your insurance helps pay if you can't live in your home because of damage. Covers food, hotel stays, etc.

Front

Peril

Back

A specific event or cause of damage that your insurance protects you from, such as fire, theft, hail, or car accident.

Front

Exclusion

Back

Something your insurance doesn’t cover.

Front

Claim

Back

A request you make to your insurance company to pay for damage, loss, or injury that your policy covers.