Ohio Drivers Ed Practice Exam

The amount you must pay before an insurance company pays a claim is called a

1. Down Payment

2. Deductible

3. Service Charge

4. Premium

The correct answer is: Deductible

A Down Payment is something generally associated with purchasing a product or service upfront. It is has nothing to do with insurance and it is an incorrect answer. A Service Charge is an additional fee that is added on to a product or service that has been provided. This has nothing to do with insurance and it is an incorrect answer. A Premium is the amount of money that is paid to the insurance company in exchange for coverage. This is different from a deductible, which is a specific amount that must be paid before the insurance company will cover the rest of the costs. The correct answer is B because a deductible is the specific amount that must be paid before the insurance company will pay for any claims. This amount is usually set at the beginning of a policy and can vary depending on the type of insurance and coverage options chosen.