These are the five main types (categories) of insurance:
Automobile Property Life Health Liability
Premium – The amount you pay over a period of time for the cost of insurance coverage is called a premium.
Deductible – Most insurance policies, except life insurance, generally include a deductible amount. The deductible is how much you must pay before the insurance company begins to pay for the loss.
It makes sense to choose a deductible that is large enough to reduce premiums but small enough to prevent financial hardship when a loss occurs.