Insurance Coverage


DEFINITION of 'Insurance Coverage'

The amount of risk or liability covered for an individual or entity by way of insurance services. Insurance coverage is issued by an insurer in the event of an unforeseen or unwanted occurrences. There are general different types of insurance coverage, such as auto or life or more exotic forms such as hole-in-one insurance.


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BREAKING DOWN 'Insurance Coverage'

The amount of insurance coverage an individual or entity will have is determined by multiple factors, however when boiled down it comes down to the probability of the insured event actually occurring. For example, most insurers will charge higher premiums for young male drivers as they deem the probability of them being involved in accident to be higher than say, a middle-aged married man with years of driving experience.

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