Getting to know the language used in an insurance policy is a pretty big task. But don’t worry, we’re here to make it simple. Think of this as your go-to guide for understanding insurance terminology, so you can make more informed decisions about your coverage.

Common Insurance Words You Need to Know

• Premium: This is the amount you pay for your insurance. Think of it as your subscription fee to keep your insurance active.
• Policy: Your policy is your insurance plan. It’s the agreement between you and the insurance company about what they’ll cover and what you’ll pay.
• Deductible & Self-Insured Retention: There are some differences but for simplicity, if something goes wrong and you need to use your insurance, this is the amount of money you must pay as part of your insurance agreement with the insurance carrier. Some policies have multiple deductibles assigned to each area of a claim. 
• Coverage: This is what your insurance company promises to pay for. Coverage can include damage to your truck, accidents, or even things stolen from your truck.
• Claim: If you need to use your insurance because of damage or an accident, you file a claim. This is your request to the insurance company to pay for the damages or losses. With every claim, there are a variety of components that can qualify or disqualify coverage.
• Liability: Liability simply means you’re responsible for causing the “accident” or “incident”. In insurance, liability coverage pays for damage or injuries you cause to others.
• Exclusions: There are two main types of insurance policy exclusions to keep track of. Named Perils, only covers you for items listed as “covered” and Broad Form Coverage covers you for everything that is not specifically listed as an “exclusion.” Typically a Claims Made Policy based on Named Perils is more restrictive and provides less coverage than an Occurrence Policy based on Broad Form Coverage

Additional Terminology Resources

The National Association of Insurance Commissioners (NAIC) is a fantastic resource for insurance agents and brokers, but they also have information for policyholders as well!

Here is a full list from A to Z of common insurance terminology https://content.naic.org/consumer_glossary 

Why This Matters 

Understanding these terms can help you pick the right insurance and know what you’re getting. It’s all about protecting your truck, your job, and your money. You want to be sure you’re not paying too much but still have the coverage you need.

Our Promise

At Archer Kemp, we love trucking! We know trucking, and we know insurance. We’re here to help make sure you understand your insurance options, so you can keep on trucking without worry. If you have questions about what these terms mean or anything else about insurance, just give us a call.

Let’s Talk

Ready to find the insurance that fits your life on the road? Contact Archer Kemp. We’ll break it all down for you in a way that makes sense, so you can get back to what you do best.

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