Consumer ed: Insurance

Deductible

The amount you have to contribute toward damages before insurance company will pay

Property Damage Liability

Coverage that would pay for someone else's car if you cause an accident

Insured

Person buying or obtaining insurance

Insurer

Company providing insurance

Policy

Contract between insured and insurer detailing coverage and exclusions

Claim

Requesting payment from insurer to cover a loss

Premium

Amount you pay to have insurance coverage

Risk Pooling

Concept of sharing the cost of possible losses with other people who have the same risk

Bodily Injury Liability

Coverage that would pay for medical costs of a person you injure in an accident you cause

Collision

Coverage you would need to fix your car when damaged in an accident you cause

Comprehensive

Coverage you would need to fix your car in case of theft, vandalism, fire, etc..

Uninsured/Underinsured Motorist

Coverage you would need if you were hit by someone with no insurance

Medicare

Gov't provided health insurance designed for people 65 yrs old and above.

Medicaid

Gov't provided health insurance for those who qualify based on income level.

HMO

Health insurance coverage that limits choices, requires referrals, but is usually lower in costs.

PPO

Health insurance coverage that has greater flexibility, but is usually more expensive.

Co-insurance

When you pay a percentage of your health costs and the insurance company pays a percentage.

Term Life

Life insurance that is only good for a certain period of time

Whole Life

Life insurance that is good until death or the policy is cancelled.

Beneficiary

Person(s) designated to receive payment upon death of person with life insurance.

medical payments coverage

covers cost for people in your own car, no matter whose was at fault for a car accident