What is the term for the amount charged by an insurer for coverage?

The term for the amount charged by an insurer for coverage is referred to as the premium. The premium is essentially the cost of obtaining insurance protection, which is paid by the policyholder to the insurance company in exchange for the coverage outlined in the policy.

Premiums are typically determined based on various factors including the type of insurance, the level of coverage, the risk associated with the insured party, and external factors such as market conditions. In essence, the premium is a crucial element of an insurance contract, functioning as the insurer’s revenue stream to cover claims and operational costs.

The other terms mentioned in the options serve different purposes in the insurance context. A fee typically refers to a charge for a service rather than a recurring insurance premium. The rate usually pertains to the cost per unit of coverage but does not directly represent the actual total amount paid. A deductible is the amount that the insured pays out of pocket before the insurer will cover a claim, which may influence the premium amount but is not the same as the premium itself.