Insurance Terms Explained Insurance, Business infographic, Car insurance from www.pinterest.com Insurance can be a complex topic, with numerous terms and definitions that may be unfamiliar to many people. Whether you are new to insurance or just want to refresh your knowledge, this article will provide a comprehensive guide to common insurance terms and their definitions. Understanding these terms will help you make informed decisions when it comes to purchasing insurance and filing claims. Policy A policy is a contract between an insurance company and the policyholder. It outlines the terms and conditions of the insurance coverage, including the premiums, deductibles, and limits. The policy specifies the risks covered and the benefits provided by the insurance company. Premium A premium is the amount of money the policyholder pays to the insurance company in exchange for insurance coverage. It is usually paid on a monthly or annual basis and can vary based on factors such as the t...