Deductibles, premiums and excess: common insurance terms explained

Here is a straightforward look at this topic for HubCage.

Insurance documents use a handful of terms that decide how much a policy really costs. The premium is the regular payment that keeps the cover active. The deductible, called excess in some countries, is the part of each claim you pay yourself before the insurer contributes. A higher deductible usually lowers the premium but increases what you pay when something happens.

Other terms worth checking are the coverage limit, which caps what the insurer will pay, and the exclusions, which list situations the policy does not cover at all. When comparing quotes, line these details up side by side rather than looking only at the price. A cheap policy with a large deductible and many exclusions may offer far less protection than it seems.