Living on your own

Premium

What you have to pay for insurance coverage.

Deductible

Must pay the deductible before insurance coverage applies.

Limit

The maximum amount that the insurance company will pay you.

Comprehensive Coverage

Non-accident damage coverage for auto insurance.

Liability Coverage

Coverage for damages to somebody else's car if it's your fault, including legal expenses.

Collision Coverage

Insurance that protects your car in the event of an accident.

Actual Cash Value (ACV)

Insurance payout calculated as the replacement cost minus depreciation.

Replacement Cost Value (RCV)

Insurance payout that covers the full cost to replace an item without depreciation.

Term Life Insurance

Life insurance that provides coverage for a period of time.

Whole Life Insurance

Life insurance that provides coverage for your entire life.

Beneficiary

The person who receives your life insurance payout.

Secondary Beneficiary

The second person in line to receive the life insurance payout.

Disability Insurance

Insurance that covers income loss due to sickness or injury.

Co-payment (Co-pay)

A fixed amount you pay for a healthcare service at the time of service.

Co-Insurance

The percentage of costs of a covered healthcare service you pay after you've paid your deductible.

MSRP

Manufacturer's suggested retail price.

Invoice Price

The actual price that the end customer pays to the manufacturer or distributor.

TMV

True Market Value of a vehicle.

VIN

Vehicle Identification Number, like a social security number for cars.

Equity

The difference between the current fair market value of a home and your outstanding loan balance.