Last Updated: May 15, 2026

Welcome to the Insurance Review Lab Insurance Glossary — a growing resource designed to help readers understand common insurance terminology in simple language.

Insurance can involve technical terms that may be confusing for first-time buyers and even experienced policyholders. This glossary provides straightforward definitions for frequently used insurance words and phrases.

This glossary is intended for informational purposes only and should not be considered legal, financial, or professional insurance advice.

A

Additional Insured

A person or organization added to an insurance policy who receives certain coverage benefits under that policy.

Adjuster

An insurance professional responsible for investigating claims and evaluating losses.

Agent

An individual licensed to sell insurance policies and help consumers select coverage.

B

Beneficiary

A person or entity designated to receive policy benefits after a covered event.

Binder

A temporary insurance agreement that provides proof of coverage until a formal policy is issued.

C

Claim

A formal request submitted to an insurance company asking for payment or benefits after a covered event.

Collision Coverage

Auto insurance coverage that may help pay for damage to your vehicle after an accident involving another vehicle or object.

Copayment (Copay)

A fixed amount paid by a policyholder for certain healthcare services.

D

Deductible

The amount a policyholder must pay out of pocket before insurance coverage begins paying for a covered claim.

Example: If your deductible is $500 and repairs cost $2,000, you pay the first $500 and the insurer may cover the remaining eligible amount.

E

Exclusion

Specific situations, damages, or events that an insurance policy does not cover.

F

Full Coverage

A commonly used term that often refers to a combination of multiple auto insurance coverages, although definitions vary.

L

Liability Coverage

Insurance coverage that may help pay for injuries, property damage, or legal expenses when the policyholder is responsible for a covered incident.

P

Policy

The legal contract between the insurance company and the insured describing coverage terms and conditions.

Premium

The amount paid for an insurance policy, typically monthly, quarterly, or annually.

Q

Quote

An estimated price for an insurance policy based on information provided during the application process.

R

Rider

An optional addition or modification that changes the terms or coverage of an insurance policy.

U

Underwriting

The process insurance companies use to evaluate risk and determine policy pricing or eligibility.

Update Notice

This glossary is regularly expanded as Insurance Review Lab publishes additional educational resources and insurance guides.

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