Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Insurance Needs Assessment: When You're Young and Single

Insurance Needs Assessment: When You're Young and Single

Even if you’re young and single, you should still consider protecting yourself.

9 Facts About Social Security

9 Facts About Social Security

There are things about Social Security that might surprise you.

4 Tips to Avoid an Insurance Claim This Winter

4 Tips to Avoid an Insurance Claim This Winter

As winter continues on, there are a few things you can do to prepare for and prevent a costly insurance claim.