What is the difference between the premium and the deductible?

The premium and the deductible are two important components of insurance regulation law in New Hampshire . The difference between the two lies in the amount of money paid by you and the insurer. A premium is the amount of money you pay each month or year for your insurance coverage. This payment is usually based on factors such as your age, your health, and the type of coverage you have. Your premium payment is made to the insurer. On the other hand, the deductible is the amount of money required to be paid out of pocket before the insurance company will pay for any claims covered under your policy. So, if you have a policy with a deductible of $500 and you file a claim for $1,000, you will be responsible for the first $500. The remaining $500 will be paid by your insurer. In summary, the premium is the amount of money you pay in advance to your insurance company for your coverage and the deductible is the amount of money required to pay out of pocket before the insurer will cover any claims.

Related FAQs

What is the purpose of customer service regulation in the insurance industry?
What is the difference between the premium and the deductible?
What are the requirements for filing an insurance claim?
How are insurance companies regulated in different countries?
How do insurers determine risk and calculate premiums?
What is market conduct regulation in the insurance industry?
What is the role of the National Association of Insurance Commissioners (NAIC)?
How do insurers determine an individual's risk level?
What is the difference between a policyholder and an insured?
What is the role of an insurance commissioner?

What is the difference between the premium and the deductible?

Related FAQs

Related Blog Posts