What is the difference between the premium and the deductible?

The difference between the premium and the deductible in insurance regulation law in New York is important to understand when shopping for insurance coverage. The premium is the amount of money the insured must pay to obtain and keep an insurance policy active. It is usually paid monthly, but can be paid in full or in installments. The premium is typically set according to the type and amount of coverage desired by the insured. The deductible is the amount of money the insured must pay out of pocket before the insurance company will cover any costs related to a claim. The higher the deductible, the lower the premium will be; however, the insured will have to pay more in the event of a loss. Generally speaking, a higher deductible leads to a lower premium and vice versa. It is important to consider both the premium and the deductible when shopping for insurance, as they are both important factors in the total cost of the policy.

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What is the difference between the premium and the deductible?

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