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The premium is what you pay for the policy. The deductible is what the insurance company will not pay for what is covered. For example you buy a car policy for collision. You pay the premium of $50. If you crash the car, the company will not pay any thing less than the deductible. If the deductible was $1000 and you sustained $1500 damage, the company would pay you $500. If the damage was less than the deductible, you get nothing.

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โˆ™ 2012-06-03 19:17:21
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Q: What is the difference between deductible and premium?
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Difference between a deductible and a premium?

A premium is the amount of money you pay the auto/health insurance company monthly, quarterly, or biannually whether or not you get in an accident or go to the hospital. The higher your premium the lower your deductible, and the lower your premium the higher your deductible. A deductible is the amount of money after you get in a car accident or visit the hospital before your insurance company pays anything. After you have met your deductible the insurance company covers the rest of the expenses.


What happens to an insurance premium when a deductible is lowered?

If a deductible is lowered the premium usually goes up


A higher deductible will usually mean a lower premium?

yes a higher deductible means a lower premium.


What usually happens to the amount of the premium if the deductible is lower compared to a policy with a higher deductible?

The premium will generally increase.


What is a premium for auto insurance?

Your premium is pretty much your monthly bill, after deciding what type of deductible you plan on choosing. The higher deductible the lower your premium will be.


what is an deductible?

A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. It can be considered to be an amount for which the insured has agreed to "self-insure". In general, there is a correlation between deductibles and premium, in that a higher deductible will correlate with a lower premium.


What is an insurance deductible?

A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. It can be considered to be an amount for which the insured has agreed to "self-insure". In general, there is a correlation between deductibles and premium, in that a higher deductible will correlate with a lower premium.


What happens to an insurance premium when a deductible is increased?

Your premium usually will go down a couple of dollars if you raise the deductible. EX. My deductible was $500 for collision and I changed it to $250. My premium went up $24 every six months. So basically your not going to save that much by increasing your deductible. Unless you have a very bad driving record.


Which of these will not cause your insurance premium to be higher?

Having a high deductible will not cause your insurance premium to be higher.


What is the difference between standard spirits and premium spirits?

Premium spirits are more expensive.


Is business insurance premium deductible from net income?

Yes.


What should your Deductible for car insurance be?

Well the higher your deductible, the lower your insurance premium will be. However, your deductible should be something you can afford in case of a loss.

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