Insurance, explained without the jargon
What the main types of cover do, what to look for in a policy, and how to avoid paying for the wrong thing.
Insurance exists to protect you from a loss you could not afford to cover yourself. The main kinds most people meet are health, auto, homeowners or renters, and life insurance. Each has its own jargon, but a few ideas apply to all of them: the premium is what you pay for the policy, the deductible is what you pay before it pays, and the limit is the most it will pay out.
Cheaper is not always better. A low premium can come with a high deductible, low limits or exclusions that matter when you claim. Read the summary of what is covered, and what is not, before you buy, and compare the same level of cover when you shop around.
Rules differ a great deal by state, particularly for auto insurance, and health insurance has its own system of marketplaces, employer plans and government programs. Where we mention a rule, check what applies where you live.
Insurance topics
Health insurance basics
Premiums, deductibles, copays, networks and how open enrollment works.
Auto insurance
What liability, collision and comprehensive cover each pay for, and how to compare quotes.
Renters and homeowners insurance
What is covered, what is not, and how much you need.
Life insurance
Term versus permanent cover and who actually needs it.
Making a claim
How to claim, what to document, and what to do if you disagree with the decision.
Common questions
Where can I get health insurance if I do not have it through work?
You can look at plans on the Health Insurance Marketplace at HealthCare.gov, or your state’s own marketplace, and check whether you qualify for Medicaid or other help. Enrollment is usually limited to specific periods unless you have a qualifying life event.
Do I need life insurance?
It depends on whether anyone relies on your income or would be left with debts. Many people with dependents consider term life insurance, which is generally cheaper than permanent cover, but it is worth comparing carefully.
What is a deductible?
It is the amount you pay for covered costs before the insurer starts to pay. A higher deductible usually means a lower premium, so choose a level you could actually afford to pay if you had to claim.
Official sources and free help
- HealthCare.gov(opens in a new tab)
The federal Health Insurance Marketplace.
- National Association of Insurance Commissioners(opens in a new tab)
Consumer information and links to your state insurance regulator.
- Consumer Financial Protection Bureau(opens in a new tab)
Guides on choosing and using financial products.
This page provides general information only. It is not personalized financial, legal or tax advice, and rules and figures can change and can differ from state to state. Your situation is unique, so please check official sources such as the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), and speak to a qualified insurance professional before making important decisions about your money.