you have an insurance policy with a $300 premium and a $500 deductible how much money should you expect to pay the insurance company each month for coverage? A: $200 B: $300 C: $500 D: $800
Answer:
The answer is: B) $300
Explanation:
Your monthly pay is determined by the premium, in this case $300. The $500 deductible is paid only when you file a claim and your company is responsible for paying any amount higher than the deductible.
For example, you have car insurance with a $1,000 deductible. In case you have an accident and the repair costs are $5,000. You will have to pay the first $1,000 and your insurance will pay the rest of the bills ($4,000).