Keep up with insurance industry news and initiatives, changes in insurance laws, and how you may be affected. Plus, learn about wedding insurance, window-replacement insurance, and other less-common insurance policies and features.
An insurance agent directly represents one or more insurance companies, while a broker has more flexibility to work with a range of insurers. Brokers may coordinate with agents to find their customers the coverage they need, but you could pay more for the service. Both need to be licensed to sell insurance in the state they do business.
An umbrella policy is liability insurance that provides coverage above and beyond the liability limits you have on your other policies, such as homeowners insurance and auto. It supplements those existing coverages and kicks in if you become liable for damages above your other policies’ limits. For example, if the liability limit on your homeowners policy is $300,000, but you’re sued for $500,000, an umbrella policy could cover the difference.
Travel insurance reimburses you for travel-related costs as a result of unforeseen events like illness or injury; canceled flights, tours, and cruises; and weather-related events. It can also offset the expense of lost, damaged, or delayed luggage. Coverage varies between policies, so make sure you compare specific coverages when getting travel insurance quotes.
Between 2019 and 2020, the average annual cost of liability-only motorcycle insurance ranged from $179 in low-cost states to $248 in high-cost states. But how much you pay will depend on the type of motorcycle you ride, the coverage you choose, your driving record, credit history, gender, age, and where you live. You may be able to reduce your premium by taking a motorcycle safety course and bundling your motorcycle insurance with other policies.
Also called your credit-based insurance score, it’s used by insurers (along with your age, gender, and other factors) to set your premium. The score takes into account your payment history, outstanding debts, the length of your credit history, if you’ve recently applied for new credit, and the different types of credit you carry. It’s not the same as your regular credit score, but may be prepared by the same companies who create your credit score like FICO.
Whether cellphone insurance is smart comes down to a few things: how much your phone costs to replace, how high the deductible is, and if you can pay to replace it out of pocket. Generally speaking, if you own a high-dollar phone, insurance is a good idea. But if you own an older model, the deductible plus insurance premiums could cost you more than buying a replacement. If you skip the insurance, just be sure you have the money to buy a new phone.
Whether you need e-bike insurance depends on a few things, including where you live and the type of bike you have (the bigger the motor, the more likely coverage is required). But even if not required, you may want insurance anyway. Your existing policies aren’t likely to cover damage to your bike from a collision and may not cover damages you’re liable for. Fortunately, e-bike insurance isn’t very expensive—policies start at around $100 per year.
A hammer clause is a clause in an insurance policy that allows the insurance company to force you to settle a claim when an injured party seeks damages against you. If you decide not to accept a settlement, you are responsible for the legal costs associated with this decision.
An insurance endorsement is an addition to an existing insurance contract that changes the terms or scope of the original policy. They're also sometimes referred to as "riders."
An insurance claim is a formal request for payment made by an insured individual to their policy provider. Payment from a claim is usually used to replace or repair property or pay for health care costs related to an injury.
Collectibles insurance covers items that make life more enjoyable and interesting, like fine art, musical instruments, sports memorabilia, and wine collections.
An insurance policy period is the time frame during which an insurance policy is effective. The start date and end date are the cutoff dates on your documentation, payments, and coverage unless you renew the policy.
Liability insurance helps cover the cost of losses you cause to another person or their property—whether through negligence or unintentional fault.
Collision insurance coverage pays to repair damages or refunds you for the cash value of your vehicle if it is totaled when you collide with something while driving.
An insurance deductible is the amount you pay for covered services before coverage kicks in.
Coinsurance is the percentage of the cost of a procedure you’re expected to pay. Your plan might pay 80% for a specified service, meaning you’ll need to cover the remaining 20%.
The insurance premium is defined as the amount of money the insurance company charges for your policy. The insurance premium is the cost of your insurance.
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