Insurance Glossary: Key Terms You Need to Know Before Choosing Coverage
Whether you’re buying car insurance for the first time or reviewing your current policy, understanding the language of insurance is essential. At Eagle Insurance 3, we believe in keeping things clear and human no fine print, no confusion.
This glossary will help you make smarter, more confident decisions about your auto, home, and commercial insurance in Florida and beyond.
Insurance Glossary: Key Terms You Need to Know Before Choosing Coverage
Whether you’re buying car insurance for the first time or reviewing your current policy, understanding the language of insurance is essential. At Eagle Insurance 3, we believe in keeping things clear and human no fine print, no confusion.
This glossary will help you make smarter, more confident decisions about your auto, home, and commercial insurance in Florida and beyond.
A
Adjuster
The person who investigates your claim and determines how much the insurance company will pay.
Auto Liability Insurance
Covers damage or injuries you cause to other people or property while driving. Required by law.
A
Adjuster
The person who investigates your claim and determines how much the insurance company will pay.
Auto Liability Insurance
Covers damage or injuries you cause to other people or property while driving. Required by law.
C
Comprehensive Coverage
Pays for damage to your vehicle caused by theft, vandalism, hail, falling objects, or weather—anything not related to a crash.
Collision Coverage
Covers repairs to your car after an accident, regardless of who was at fault.
C
Comprehensive Coverage
Pays for damage to your vehicle caused by theft, vandalism, hail, falling objects, or weather—anything not related to a crash.
Collision Coverage
Covers repairs to your car after an accident, regardless of who was at fault.
D
Deductible
The amount you pay out of pocket before your insurance kicks in after a claim.
Declarations Page
A summary of your policy: what’s covered, how much, and what you pay.
D
Deductible
The amount you pay out of pocket before your insurance kicks in after a claim.
Declarations Page
A summary of your policy: what’s covered, how much, and what you pay.
F
Full Coverage
A common term for a policy that includes liability, collision, and comprehensive coverage.
F
Full Coverage
A common term for a policy that includes liability, collision, and comprehensive coverage.
L
Liability Coverage
Covers injuries and property damage to others when you are at fault. Required in Florida.
L
Liability Coverage
Covers injuries and property damage to others when you are at fault. Required in Florida.
P
Personal Injury Protection (PIP)
Covers medical bills and lost wages after an accident, no matter who caused it. Mandatory in Florida.
Premium
The amount you pay monthly or yearly to keep your insurance active.
P
Personal Injury Protection (PIP)
Covers medical bills and lost wages after an accident, no matter who caused it. Mandatory in Florida.
Premium
The amount you pay monthly or yearly to keep your insurance active.
R
Roadside Assistance
24/7 help for flat tires, dead batteries, running out of gas, and other emergencies.
R
Roadside Assistance
24/7 help for flat tires, dead batteries, running out of gas, and other emergencies.
S
SR-22
A special form some drivers are required to file to prove they have valid insurance, often after traffic violations.
S
SR-22
A special form some drivers are required to file to prove they have valid insurance, often after traffic violations.
U
Uninsured Motorist Coverage (UM)
Covers your medical expenses or damages if you’re hit by a driver with no insurance or not enough coverage.
U
Uninsured Motorist Coverage (UM)
Covers your medical expenses or damages if you’re hit by a driver with no insurance or not enough coverage.
Final Tip:
Understanding these terms isn’t just about insurance — it’s about protecting your lifestyle, your income, and your peace of mind.
Explore our full coverage options or get a quote now to see how these protections fit your real life.