Insurance Terms Explained in Simple Language

Insurance can feel confusing especially when policies are full of unfamiliar words. At Accupro Insurance, we believe understanding your coverage should be simple and stress-free. Below is a clear easy to understand guide to common insurance terms so you can feel confident when choosing the right policy.

PREMIUM: The total amount for your policy term. While often paid monthly, they can be paid in 6 month or 12 month installments, often with options to save by paying in full.

DEDUCTIBLE: A deductible is the amount you pay out of pocket before your insurance company helps cover the rest of the claim. For example if you have a $1,000 deductible and $7,500 in damages, you pay the $1,000 and the insurance covers the remaining amount.

COVERAGE: Coverage refers to what your insurance policy protects you against, such as accidents, damage, theft, or liability. Not all policies offer the same coverage as to why itis important to review your policy regularly .

POLICY: A policy is the contract between you and the insurance company. It explains what is covered, what isn’t, and under what conditions claims are paid.

CLAIM: A claim is a request you file with your insurance company after a loss or accident.

LIABILITY: This coverage helps pay for damages or injuries you cause to other. For example if you’re at fault in a car accident liability coverage helps cover the other drivers damages or medical bills.

LIMITS: Your coverage limits are the maximum your insurance will pay for a covered claim. For example if your limits are 25,000/50,000, insurance won’t pay more than that amount even if the damages exceed that amount.

EXCLUSIONS: Exclusions are situations or drivers that your policy does not cover. If you have a excluded driver and they get in an accident driving the vehicle on your policy the insurance will not cover anything in the accident.

Why Understanding These Terms Matter: Knowing these basic insurance words help you choose the right coverage, avoid surprises during a claim, and so you can feel confident about your policy.