Premiums/deductibles - what’s the difference between the two?
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An insurance premium is an amount one pays per month (or agreed upon term) for an auto insurance policy on their vehicle in Canada. An insurance deductible is the amount of money the insured party is required to pay - out of pocket - before their insurance company will step in and cover damages.
The amount on your policy can vary. A higher deductible usually means a lower premium (per month cost for your car insurance policy). It is essential to make sure you can reasonably afford your auto insurance deductible. In the case of an accident, if you cannot pay your deductible, your insurance company will not be able to help with your overall costs.