Solved After he bought a new car, nelson purchased car insurance

Question:

After he bought a new car, nelson purchased car insurance. He must pay $75 each month for the plan. Later that month, nelson caused a car accident when he lost control of his vehicle. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest. Read the passage about nelson’s car insurance. What is the $75 payment nelson must make each month?

A. Premium

B. Co-payment

C. Deductible

D. Payout

Answer:

A. Premium