The relationship between insurance premiums and deductibles is an inverse relationship; in that, ________.

Question

Quizplus · Accepted Answer

When it comes to insurance, deductibles and premiums are inversely related. This means that when the deductible is higher, the annual premium is lower. Conversely, when the deductible is lower, the annual premium is higher. This is because a higher deductible means that the policyholder is bearing more of the risk and the insurance company is taking on less risk, which translates to a lower premium.

The Relationship Between Insurance Premiums and Deductibles Is an Inverse