Intro to Insurance
Important Insurance Terms
Is this how all of insurance works, or just auto insurance?
All insurance policies work this way. Speaking of which—this is probably a good time to define a few important terms that you’re going to hear no matter which type of insurance you’re buying.
What is a deductible?
The money that the insurance company pays me to cover a loss
The portion of a loss I’m required to cover myself
An insurance policy that automatically renews each year
Money that is automatically taken out of my paycheck to cover my insurance policy
What’s an insurance policy?
The cost of insurance
Laws that regulate the insurance industry
A contract for coverage between you and an insurance company
None of the above
What is a premium?
An increase in how much the insurance company charges a customer who suffers a loss
The price difference between two insurance policies
The price difference between two insurance companies
The amount of money the insurance company charges for a policy