Insurance can be intimidating, and at times, confusing to understand. Sure, we know we all need it, but what does that entail? How do you know which coverage is right for you and exactly how much of that coverage you need? First things first – educate yourself and ask questions. The best way to know if you are getting what you need in the insurance world is to understand what you are signing up for. Let’s start by going over some basic terms.



This refers to your chance of loss by being exposed to any particular item or event. You are considered to be at risk if you own a home, a car, a business, etc., which makes it essential to obtain insurance in those cases.


This is a specific dollar amount that you agree to pay out of pocket for a loss before the insurance covers any financial responsibility to a loss. It’s important to note that a low premium will give you a high deductible amount and a high premium will give you a lower deductible amount.


A claim is when you make a request to your insurance company to help you cover a loss.


This is the maximum dollar amount or percentage that an insurance company will pay from your policy to you for a covered claim.


This is the specific cause of loss. For example, a fire, windstorm, flood, or theft.


This section of your policy states the conditions or items that are not protected against.


Vehicle Identification Number. This number consists of 17 digits, both letters and numbers, that identify your type of vehicle. Each VIN is unique to your specific vehicle, and can be found on your car, on your title, registration, or ID Insurance Card.

Medical Payments

This coverage is optional to add to your policies. Medical Payments, or MedPay, cover medical/funeral expenses caused by an accident.


If you have more questions about these important insurance terms or about any other terms you have heard before and may not understand, please contact one of our agents and we’d be happy to assist you! We are here to help make insurance simple and to help you better understand your policies, so you aren’t left in the dark.


All the Best,