Question

Your auto insurance policy has a $200 monthly premium and $700 deductible. what is the maximum amount you will have to pay out of pocket for a car accident before yout insurance covers your cost?

Answer 1

Your monthly premium is the payment you make to your car insurance company that keeps your coverage active.

A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest.

Therefore $700 is the maximum amount you will have to pay
out of pocket for a car accident before your insurance covers your cost.