A premium is the amount you pay, monthly or yearly, to keep an insurance policy in force. You pay it even in a year when you never file a claim. A deductible is the amount you pay yourself on a covered loss before the insurance company pays. A higher deductible usually lowers the premium.

Related Lessons:

• Click Here for our lesson on Types of Insurance
• Click Here for our lesson on Life Insurance: The Ultimate Safety Net
• Click Here for our lesson on What’s Not Covered in Renter’s Insurance?
• Click Here for our lesson on What Damage Does Home Insurance Cover?
• Click Here for our lesson on Car Insurance: How to Lower Your Rates
• Click Here for our lesson on Why Health Insurance is So Expensive?
• Click Here for our Income Protection Insurance Calculator
• Click Here for our Property Insurance Quote Builder
• Click Here for our Auto Insurance Quote Builder