Whether you’re shopping for Car, Home, Health, Life or any Insurance – learn the lingo or you will pay too much and get the wrong coverage. Here are the more common insurance terms to help you get the right insurance.

General terms:

Deductible – Deductibles reduce the price of insurance because you pay a predetermined amount of the loss or expense BEFORE the insurer pays. You select the deductible and the higher you choose, the lower your premium.

Premium – the premium is the cost of the insurance. It is how much you or your company pays for the coverage.

Property and Casualty – this identifies a part of the insurance industry that handles impairment to property or individuals hurt in an accident. Auto, householders and commercial liability insurance fall into this category.

Life and Health – This is the other segment of the insurance industry that does not fit under the property and casualty label.

Umbrella Insurance – This is wider insurance coverage than the original fundamental policy. For instance, a householder’s insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.

Auto Insurance:

Collision – Like the name implies, this is the aspect of your car insurance that compensates for fixing damages to your car following the deductible.

Comprehensive – This term also applies to car insurance and it’s that aspect of your insurance coverage that compensates for “non-collision” types of damage like fire, water, malicious mischief or theft.

Liability Insurance – Liability insurance pays the losses of a third party such as personal injury, property or pain and suffering. Homeowner insurance also has liability provisions to protect you from personal injury lawsuits.

No-fault – About fifty percent of the states require “no fault” insurance which pays for impairments to vehicles, property and individuals irrespective of who is at fault in the accident.

Medical Insurance:

Ancillary Care/Coverage – Ancillary is just a fancy term for “additional” or “extra” or “related.” It applies to comprehensive policies that for example, only cover basic health benefits but also have added (ancillary) coverage for prescription drugs or eye care, etc.

Cobra – Cobra is a U.S. law that compels organizations to offer extended health-care insurance coverage to dismissed employees for a specified time period. This insurance coverage is generally paid for by the ex-employee but at group rates.

Co-payment – An amount much your insurance requires you to pay for each visit to the doctor’s office, or for other care. The insurance company then pays the remainder of the bill assuming the deductible has been met.

Fee for Service – With this health Insurance you to select any doctor and the insurer will pay an agreed percentage of “reasonable and customary” fees for that type of doctor in your area. You then pay any remainder.

H,M.O. – “HMOs” are created to deliver complete health coverage for a predetermined fee. But, these organizations generally call for you to use their MD’s and hospitals thus restricting your selection.

P.P.O. – “Preferred Provider Organizations” are networks of doctors who charge on a fee for service basis but typically at a discount pre-negotiated by the insurance company. Thus insurance companies will usually pay a larger share of your bill if you go to one of their “preferred providers.”

Life Insurance:

Annuity – These are policies that pay while a person is alive for a specified period of time. They are usually offered by life insurance companies.

Term Life – Term life is a form of insurance bought for a specified time (or term). If the insured dies during this time period, the insurance is paid. If not, the insurance coverage expires or must be renewed to keep the benefit.

Universal Life – A Life policy accompanied by a savings plan tied to market rates of interest and the benefits are not fixed but can change within boundaries.

Whole Life – A standard life policy that accrues cash value over the life of the policy and with preset premiums. The insurance benefit is also a set at an assured amount.

Chris Carbukel enjoys helping people find the lowest cost insurance policies for their needs. If you’d like to know more visit his new website Insurance-Price-Quotes.org where you can learn how to get the best deals on all kinds of insurance including finding the best Home Insurance Comparison.