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Insurance Basics: Premiums, Deductibles & Coverage

Learn the vocabulary that shows up in health, renters, auto, and other insurance.

First Job · 4 min

Step 1

A premium is generally what you pay to keep a policy active. A deductible is an amount you may need to pay before certain coverage begins.

Coverage limits, copays, coinsurance, exclusions, and networks can all affect what you actually pay.

Do not compare insurance using premium alone. Read the plan details and think about the risks the policy is meant to protect.

Try this: Add recurring insurance premiums to Bills so they are included in your monthly picture.