Glossary of Important Insurance Terms

When attempting to make the best decisions, terminology knowledge is helpful.

Making decisions can be challenging if you are unfamiliar with the insurance terminology being used to explain your possibilities. Here's a quick review:

Deductible: The amount you must pay out-of-pocket before your insurance company begins to cover a claim. Lowering your deductible will result in lower insurance prices.

Depreciation is the decline in value of any asset brought on by use, aging, and/or time. This is typically not compensable.

Lienholder: The individual or business who provided the funding to buy the car. The amount of the loan or the balance still outstanding, whichever is less, determines the lienholder's financial interest in the vehicle.

Aspects Covered

Comprehensive Insurance: Covers damage to your vehicle caused by theft, vandalism, flood, fire, or other insured dangers.

Collision insurance: Covers a vehicle's damages if it collides with another vehicle, object, or flips over. The terms and conditions of your policy contract govern the coverages. Most consumers with older cars do not carry comprehensive or collision insurance. Buyers of new cars will desire this insurance.

Bodily Injury Liability: If you injure someone with your vehicle, this covers the victim's medical expenses, pain and suffering, and potentially lost wages. This coverage will cover your legal costs if you are sued as a result of the accident.

Property Damage Liability: This covers replacement expenses or repairs if you wreck another automobile, strike a structure, or collide with a lamp post.

Uninsured/underinsured Motorist: If you are struck by a driver who is either uninsured or underinsured, this coverage will pay for your medical bills, lost wages, and even burial expenses for you and any passengers in your car.

Property Damage Caused by an Uninsured Motorist: In rare cases, this may cover property damage brought on by an uninsured, or in some jurisdictions, an underinsured, driver. In some situations, it also provides coverages for at-fault drivers who have insufficient insurance to satisfy your claim and underinsured motorists. The types of coverage vary per state.

No of who was at fault for the collision, medical coverage covers some funeral costs as well as medical fees for you and anyone else in your car. If you are wounded while riding in someone else's car, it also covers you.

Checklist for Pre-Deployment

This list can be useful if you need to deploy but are short on time.

Power of attorney Living Will Safe Deposit Box Legal Documents

Money-Related Issues

Savings checking with a bank or credit union

taxes deposited directly

Invoice Numbers

passwords for computers

Creditors

Home Matters Property

Insurance\sAppliances

Heating/AC

Heater, water

Gas/Water Mains

Relay Panels

Smoke Alarms

Emergency preparedness kit Alarm

Backup house keys

Call-In Numbers

Auto

Insurance

Discounted Auto Storage Plans

Emergency Maintenance Kit

Private Issues

Military identification cards

Membership in DEERS

Status of Tricare Family Support Groups

Ombudsman

Mailing Lists

Do not wait till a theft or emergency to act.

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