Insurance in the US works differently from many other countries. The words are unfamiliar, the policies are long, and some coverage that seems standard is actually optional. This guide explains the basics in plain language.
Key words
| Term | What it means |
|---|---|
| Premium | The price you pay for the policy, monthly or for six or twelve months |
| Deductible | The part of a covered loss you pay yourself before insurance pays the rest |
| Limit | The most the policy will pay for a covered claim |
| Liability | Coverage for injuries and damage you cause to other people |
| Claim | Your request for the insurance company to pay for a loss |
| Exclusion | Something the policy doesn't cover |
| Endorsement | A change or addition to the policy |
| Agent | A licensed person who helps you choose and buy insurance |
What Washington requires
- Car insurance: liability of at least 25/50/10 for every car you drive.
- Home insurance: not required by law, but required by your lender if you have a mortgage.
- Renters insurance: not required by law, but many leases require it.
- Business insurance: contractors need general liability and a bond to register with L&I. Employers must cover workers through L&I.
How a deductible works
Say your car has $4,000 of damage in a covered accident and your deductible is $500. You pay $500, and the insurer pays $3,500. A higher deductible lowers your premium, but you pay more when something happens. Choose an amount you could pay without stress.
Insurance companies and agents
In the US, you can buy directly from an insurance company or through an agent. An independent agency like Rhino works with several companies, compares their prices for you and helps with changes and questions. Our help doesn't add a separate fee to your policy.
Paying and renewing
Most policies last six or twelve months and renew automatically. The price can change at renewal. If you miss a payment, the insurer can cancel the policy, and a gap in coverage can make your next policy more expensive. Set up automatic payments if you can.
When something happens
Call your insurance company's claims line, which is on your ID card or policy. Take photos, keep receipts and write down who you talked to. Don't sign anything you don't understand. Rhino doesn't handle claims, but we'll help you understand the process.
Ask in your language
Our team speaks Russian and Ukrainian. If something in a policy or letter isn't clear, call or text us and we'll explain it.