What is the term for the money paid to an insurance company for coverage?

The term for the money paid to an insurance company for coverage is known as the premium. A premium represents the cost that a policyholder agrees to pay, typically on a monthly or annual basis, to maintain their insurance policy. This amount is determined based on various factors, including the type of coverage, the level of risk associated with the insured, and the insurance provider's pricing guidelines.

Understanding the concept of a premium is crucial for policyholders, as it directly affects their budgeting for insurance costs. When a premium is paid, the insurance company agrees to provide financial protection against certain risks specified in the policy, such as damages from accidents, theft, or liability claims.

The other terms listed do not represent the payment made to the insurance company for coverage. A deductible is the amount a policyholder pays out of pocket before the insurance coverage kicks in for a claim. A quote refers to an estimate of what the premium will cost but does not involve an actual payment. Lastly, a commission is a payment made to an insurance agent or broker for selling or servicing insurance policies, not a payment made for coverage itself.