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

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).

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