Ultimate Insurance Glossary
Hundreds of insurance terms explained in plain English — coverage, claims, liability, and more. Use the text quote or call us for help comparing options.
Glossary — commonly used insurance terms
How to use this glossary: scan alphabetically, compare terms in the table below, or tap the Text Quote button for a quick estimate. Call us anytime at 888-445-2793.
| Term | Short definition | Learn more |
|---|---|---|
| Deductible | An amount you pay out-of-pocket before insurance pays the rest of a covered claim. | Learn more |
| Liability | Coverage that pays for injuries or damage you cause to others. | Liability basics |
| SR-22 | A certificate proving you carry required auto insurance (often after a violation). | SR-22 in Alabama |
Deductible
The dollar amount you must pay before your insurer begins to pay for a covered claim. A higher deductible typically lowers premiums but increases your out-of-pocket cost at claim time.
Liability
Pays for damage or injury you cause to another person or their property. Most states require minimum liability limits to legally drive.
SR-22
A form filed with the state showing proof of required insurance after certain violations. It does not itself provide insurance — it certifies it.
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More than you ever want to know about insurance (A–Z)
Last Updated on by Jayleen Ridgeway