Auto
Liability pays for damage you cause others. Collision and comprehensive cover your own vehicle. Uninsured-motorist coverage fills the gap when the other driver has none.
Fundamentals
Coverage basics, without the jargon
Every policy is built from the same handful of moving parts. Learn them once and you can read any contract.
The six terms that matter most
- Premium
- What you pay to keep the policy active, usually monthly or every six months.
- Deductible
- The amount you pay out of pocket on a claim before the insurer contributes.
- Coverage limit
- The maximum the insurer will pay, per claim or per policy period.
- Exclusion
- A loss the policy specifically will not pay for — read this section first.
- Rider / endorsement
- An add-on that extends or modifies the standard coverage.
- Copay & coinsurance
- Fixed or percentage shares of a covered health cost you owe.
Main types of coverage
Home & renters
Dwelling, personal property, liability and loss-of-use are the four pillars. Flood and earthquake are almost always separate policies.
Health
Networks, deductibles, copays and the out-of-pocket maximum together decide your real annual cost — the premium alone doesn't.
Life
Term covers a set number of years at a lower cost. Permanent lasts for life and builds cash value at a higher premium.
Disability
Replaces part of your income if illness or injury stops you working. Check whether the definition of disability is 'own occupation' or 'any occupation'.
Umbrella
Extra liability protection stacked above your auto and home limits, typically inexpensive per million of coverage.