Everyone needs insurance, whether it's for your home, car, or boat. However, many people are unfamiliar with the terminology that gets thrown around when talking to an insurance agency. In fact, according to Value Penguin, 47% of homeowners are unsure of what their insurance covers. Luckily, we're here to help. Here are a few of the most common insurance terms that you need to know.

Premium

Your insurance premium is your monthly payment for auto insurance, homeowners insurance, and so on. The cost is determined by the type of insurance you have and what it covers. Most often, a higher premium means a lower deductible, which is advantageous for some people. Talk to your insurance company about which plans are best for you and your needs.

Deductible

Your deductible is how much you have to spend before insurance kicks in. For example, if your auto insurance policy deductible is $600, then you have to spend at least $600 before insurance will begin to offer coverage. If you prefer lower monthly payments, you can opt for a plan that has a low premium, but it will have a higher deductible. If you think that you'll need frequent help from your insurance, it may be worth higher monthly payments for a lower deductible.

Claim

If your car, home, or other insured asset is damaged or stolen, you'll need to file an insurance claim. If your car suffers from hail damage, for example, you can file a claim with your insurance company requesting help in paying for the repairs. Your policy will outline what your insurance does and doesn't cover, so you should get help from an insurance agency when determining if you should file a claim or not.

Third-Party Claim

A third-party claim is when you file a claim with someone else's insurance company or they file a claim with yours. If you're making a third-party claim, then that means the other person is responsible for the damages and you're requesting that their insurance company pay for it. If someone crashed into your car while texting and driving, then their insurance will be responsible for it rather than your own.

The world of insurance can be complicated, but insurance agencies are here to help. Contact Roderique Insurance Agency, LLC for your insurance needs, and we can help you choose the right policy for you.