What is the difference between the premium and the deductible?

The premium and deductible are two important terms to understand when it comes to insurance regulation law in Florida. The premium is the amount of money the policyholder agrees to pay in order for their policy to remain in effect. This amount is usually paid on a monthly or yearly basis. The deductible, on the other hand, is the amount of money the policyholder must pay out-of-pocket in the event of a claim before the insurance company will cover the remaining cost. The deductible could be a fixed dollar amount or a percentage of the total claim amount. The amount of the deductible is usually determined when the insurance policy is purchased. In summary, the premium is a consistent payment made over the life of the policy in order for the policy to remain in effect, while the deductible is a one-time payment made in the event of a claim. The higher the deductible, the lower the premium, and vice versa.

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What is the difference between the premium and the deductible?

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