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Answered 2007-01-17 13:08:32

Your premium usually will go down a couple of dollars if you raise the deductible. EX. My deductible was $500 for collision and I changed it to $250. My premium went up $24 every six months. So basically your not going to save that much by increasing your deductible. Unless you have a very bad driving record.

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What happens to an insurance premium when a deductible is lowered?

If a deductible is lowered the premium usually goes up

Which of these will not cause your insurance premium to be higher?

Having a high deductible will not cause your insurance premium to be higher.

What happens to the premium when the deductible is lowered?

If you increase your deductible you are therefore retaining more of the risk upon yourself and therefore the insurance company will reduce your premiums.

What is a premium for auto insurance?

Your premium is pretty much your monthly bill, after deciding what type of deductible you plan on choosing. The higher deductible the lower your premium will be.

Difference between a deductible and a premium?

A premium is the amount of money you pay the auto/health insurance company monthly, quarterly, or biannually whether or not you get in an accident or go to the hospital. The higher your premium the lower your deductible, and the lower your premium the higher your deductible. A deductible is the amount of money after you get in a car accident or visit the hospital before your insurance company pays anything. After you have met your deductible the insurance company covers the rest of the expenses.

What should your Deductible for car insurance be?

Well the higher your deductible, the lower your insurance premium will be. However, your deductible should be something you can afford in case of a loss.

What usually happens to the amount of the premium if the deductible is lower compared to a policy with a higher deductible?

The premium will generally increase.

Is business insurance premium deductible from net income?


What happens to a insurance premium when a deductibles increased?

Generally the cost of the premium goes down. The more you pay out of pocket when you file a claim the less you pay for the premium.

An insurance policy with a higher premium most likely has?

a lower deductible

What is the normal deductible for bodily injury liability car insurance?

The deductible for bodily injury liability car insurance depends upon what you select. The deductible portion is not covered by the insurance policy and thus high deductible policies have a lower premium. Car insurance requirements also vary from state to state.

Is insurance premium part of deductible?

The insurance premium is the amount you pay the insurance company every month. The insurance deductible is the set amount which you pay out of pocket for repairs after you make a claim. For example... you may pay $100 to the insurance company every month for the insurance policy and have a $500 deductible. If you file a claim you are expected to pay for $500 of the repairs yourself, while the insurance policy covers anything above that amount up to your max limits.

How do deductibles work for health insurance?

A deductible is the amount of your actual, billed health care costs that you must pay before the insurance will kick in. Your premium does not count towards your deductible. The higher your deductible, the more you have to pay before your insurance will start to cover your bills.

What is the difference between deductible and premium?

The premium is what you pay for the policy. The deductible is what the insurance company will not pay for what is covered. For example you buy a car policy for collision. You pay the premium of $50. If you crash the car, the company will not pay any thing less than the deductible. If the deductible was $1000 and you sustained $1500 damage, the company would pay you $500. If the damage was less than the deductible, you get nothing.

What happens to an auto insurance premium when a deductible is lowered?

Depending on your driving record, there may be little change in your rate, however when you do utilize your insurer for a claim, you'll pay less out-of-pocket. If that is the only thing changing, decreasing the deductible will increase the premium. They have other expenses to service your policy, so the calculation isn't this simple, but if the insurance company's statistics predict you will submit 1 claim for $1000 damage every ten years, theoreticly they could give you free insurance if you selected a $1000 deductible since they would expect no payouts. If you lowered the deductible to $500, then they would expect to pay $500 sometime in the next ten years and would want a premium of $50 a year. If a deductible is lowered the premium usually goes up

Are long term care insurance premiums tax deductible?

Yes, it is. Long term care insurance premiums are tax deductible. Premium payments are considered to be medical expenses and they are deductible as long as the medical expenses exceed 7.5% of the individual's income.

What is an insurance deductible?

A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. It can be considered to be an amount for which the insured has agreed to "self-insure". In general, there is a correlation between deductibles and premium, in that a higher deductible will correlate with a lower premium.

Is a health premium the same as a deductible?

No. When referring to health insurance, the "premium" is the amount you pay to the health insurance company each month to maintain your coverage. The "deductible" is a specific dollar amount you may be required to pay out-of-pocket per year before the health insurance company will begin paying for medical services covered under your policy. The amount you pay toward your monthly premium (or for copayments) does not count toward your annual deductible. Not all health insurance plans have a deductible, and even among plans with deductibles, some services may be covered up-front (preventive care, for example) without being applied toward your deductible.

A higher deductible will usually mean a lower premium?

yes a higher deductible means a lower premium.

Health Insurance Plans: Cost Basics?

Health insurance plans have three main components: the premium, the deductible and the co-insurance. The premium is the money that you pay each month to be covered by the health plan. This is the only part of the plan that is paid whether you use your insurance or not. The deductible is the amount of money you have to pay out of pocket each year, before your insurance company will begin picking up part of the bill. The co-insurance is the portion of the bill that you are required to cover after the deductible has been reached. These companies together make up your actual cost of health insurance.

About what percent of premiums do you pay for high deductible insurance compared to low deductible insurance?

It really is not possible to define that in percentages. But think of it this way, the higher the deductible ( the amount you pay BEFORE the insurance company begins to pay ) the lower the premium. Just do the math, if you are taking a $2,000 deductible over a $1,000 deductible , but you are only saving $200 a year, it is not a good choice. You are basically putting yourself on the hook for potentially another $1,000 in deductible to save $200.

Do you have to pay taxes on premiums for an indivdual life policy?

Life insurance premiums are not tax deductible, in general. However, group life insurance premiums are deductible for a business if the death benefit is $50,000 or less. Also, using key man insurance and executive bonus mechanisms, sometimes there can be some tax advantages. But, the premium is not deductible.

Can your term life insurance payment be increased after a period of time?

No, you are to opt for a fresh term life insurance policy if you are willing to pay increased premium for additional coverage.

What happens when your car insurance is cancelled by the insurance company?

What happens is that you get a new insurance policy, possibly with another insurer. Any unearned premium will be returned to you by your insurer.

Is it better to get a low deductible insurance policy for my teenage son?

A low deductible will mean higher premiu. Your premium will already undoubtably be high with a teenage driver on your policy so you may want to consider it.

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