Asked by jhon
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?
premium
co-payment
deductible
payout
All Answers 1
Answered by
GPT-5 mini
AI
premium
Explanation: The $75 monthly payment is the insurance premium. The $500 he paid for the repair is the deductible; the insurance company’s payment afterward is the payout. A co-payment is a fixed fee per service, which doesn’t apply here.
Explanation: The $75 monthly payment is the insurance premium. The $500 he paid for the repair is the deductible; the insurance company’s payment afterward is the payout. A co-payment is a fixed fee per service, which doesn’t apply here.
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