Key Insurance Terms and What They Mean

Pride Insurance Agency is pleased to offer this glossary of key insurance terms to help you understand the details of your coverage and ensure you’re carrying the right policies.

The right combination of insurance policies can ensure your financial interests are secure. However, while you may be aware of the importance of adequate coverage, the language and jargon used in the insurance world can sometimes be confusing.

Key Insurance Terms Glossary

As you shop for coverage or reassess policies, it can be invaluable to ensure you understand the following terms and phrases:

• Premium—This is the amount you agree to regularly (e.g., monthly, quarterly or annually) pay to maintain your insurance policies.

• Coverage—This refers to the details within your insurance, including what risks, perils and situations you may be financially protected against.

• Deductible—This is a predetermined minimum amount you’ll be required to pay out of pocket before your insurance can begin to contribute and offset remaining losses.

• Limit—This is the maximum amount your insurer can pay even for covered losses.

• Quote—This is a calculation of estimated premiums that you can request from insurance companies as you shop around for the right policies.

• Rider—Also known as an endorsement, these are additional features and financial protections that you may be able to add to your coverage.

• Exclusion—This is a type of incident or peril that is expressly not covered by your insurance policy.

• Effective period—This is when your insurance is active and provides coverage.

• Renewal—This is the process through which you can potentially continue or adjust your policy after its effective period ends.

• Claim—These are what you submit following incidents when you seek to tap your insurance and receive financial assistance for your losses.

We’re Here to Help

Contact Pride Insurance Agency in San Antonio, Texas, today to learn more about insurance terminology or coverage options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.