What is the term for the amount paid by the insured for coverage?

The term for the amount paid by the insured for coverage is known as the premium. This is the fee that policyholders must pay, usually on a monthly, quarterly, or annual basis, to keep their insurance policy active. The premium amount can vary based on several factors, including the type of coverage, the insurer's underwriting criteria, and the risk profile of the insured. It is essentially the cost of purchasing the insurance contract and allows the insurer to provide coverage for various risks.

In contrast, the deductible refers to the amount that the insured must pay out-of-pocket before the insurance coverage begins to pay for a claim. The policy limit is the maximum amount an insurer will pay for a covered loss, which sets a ceiling on how much the insured can recover in the event of a claim. Excess might refer to a portion of a claim that exceeds the set limits of a policy or a separate coverage that is beyond the standard policy limits. Understanding the distinction between these terms is essential for evaluating the costs and coverage associated with insurance policies.