What term describes the total amount a customer pays for their insurance policy?

The total amount a customer pays for their insurance policy is referred to as the premium. This term encompasses the cost that insured individuals or businesses agree to pay to their insurance provider in exchange for coverage. The premium can be paid in various frequencies, such as monthly, quarterly, or annually, depending on the terms of the policy and the preference of the policyholder.

In insurance terminology, the rate refers to the base price per unit of coverage, which is then multiplied by the number of units of coverage to determine the premium. Deductibles are amounts that policyholders must pay out-of-pocket before the insurer begins to cover expenses related to a claim. Exclusions are specific conditions or circumstances that are not covered by the insurance policy. Thus, the premium represents the overarching cost incurred by the customer to maintain their policy.