What is the difference between a premium and a deductible?

As you search for affordable Massachusetts car insurance, it is important to know the difference between deductibles and premiums to find the plan that is right for you and your budget. A premium is the amount you pay month-to-month to your insurance company in exchange for their services. While many people search for the lowest possible premium, this may leave them with a high deductible.

A deductible is what you are responsible for paying after an accident. For instance, if you have a $200 deductible and you are involved in a collision that causes $1000 in damages, you must pay $200 and your insurance company will pay the remaining $800. If you pay a little more on your premiums each month, you will be responsible for less out-of-pocket costs related to injuries and property damage in the event of an accident.

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