consumers education

Sticker Price

Manufacturer's listed price you see the car on sale for. Ex: A car dealership displays a vehicle with a price tag in the window, which is the sticker price.

Invoice Price

The amount that the dealer paid to buy the car from the manufacturer. Ex: A buyer negotiates a car price and learns the invoice price.

Extended Warranty

Sometimes called a service agreement, is a prolonged warranty offered to consumers. Ex: A customer buys a laptop and opts for an extended warranty to cover repairs for an additional two years.

Security Deposit

Money landlord holds to cover any damages to rental property. Ex: If a home or an apartment rents for $5,000 per month, the security deposit would also total $5,000.

Mortgage

Loan to buy real estate, such as land or a house. Ex: A family takes out a mortgage to purchase their home, agreeing to monthly payments to the lender for 30 years.

Appreciation

An increase in the value of an asset, like a house, over time. Ex: A homeowner sells their house five years later for significantly more than they paid due to the property's appreciation in value.

Earnest Money

Proof of your intention to buy at the agreed-upon price. Ex: A $300,000 home will require an earnest money deposit between $3,000 to $9,000.

Policy

A contract outlining the terms and coverage of insurance or rules in place. Ex: A person reads their car insurance policy to understand the coverage provided in case of an accident.

Premium

The amount paid regularly for insurance coverage.

Appraisal

An expert’s determination of the value of a piece of property. Ex: A person wants to sell a rare painting. They hire an art expert to conduct an appraisal.

Property Damage Liability Insurance

Helps pay to repair damage you cause to another person's vehicle or property. Ex: A driver accidentally hits a neighbor’s fence. Their property damage liability insurance pays for repairing the fence.

Deductible

The amount that you pay before the insurance company pays anything. Ex: After a storm damages their roof, a homeowner files an insurance claim and pays the $500 deductible before their policy covers the remaining repair costs.

Personal Insurance

Coverage that protects individuals against financial loss due to unforeseen events, typically including life, health, and property insurance. Ex: A parent buys life insurance to provide financial security for their family in case of their death.

Collision Insurance

Coverage for vehicle damage resulting from accidents. Ex: If you end up spinning out and hitting a guardrail, your collision car insurance may cover the cost of repairs to your vehicle.

Claim

A formal request for payment from the insurance company. Ex: A homeowner's basement floods due to a burst pipe. They file a claim with their home insurance company to get reimbursed for the cost of repairs and damaged belongings.

Property Insurance

Insurance that protects you from financial loss when things you own are stolen, damaged, or destroyed. Ex: A business owner’s office is burglarized. Their property insurance reimburses them for the stolen equipment.

Property Damage Liability Coverage

Pays for damage you caused to another person’s property. Ex: While parking, a driver scrapes another car. Their property damage liability coverage pays for the other car’s repairs.

Worker’s Compensation

Insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job. Ex: An employee injures their back while lifting heavy equipment at work. Worker’s compensation covers their medical expenses.

Medicare

Health insurance program for people age 65 and above, or young people with disabilities. Ex: A retired individual enrolls in Medicare to help cover hospital visits and medical treatments in their senior years.