The premium on insurance is often to the deductible, allowing insurance companies to their customers.

Question

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The statement mentions that the premium and deductible are inversely related. This means that when the deductible is high, the premium is low and vice versa. This allows insurance companies to screen their customers and assess the risk associated with them. Customers who opt for a high deductible are indicating that they are less likely to make claims, and hence, are viewed as less risky by the insurance company.

The Premium on Insurance Is Often to the Deductible, Allowing