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

Insurance Premium is defined as the amount of money that one will have to pay for an insurance contract. The insurance premium simply represents the income of the insurance company concerned.

Now, the amount of premium paid for different insurance policies usually differs depending on a number of factors. However, the greater the risks associated with an insurance policy, the higher the premium that will be paid.

Since Nelson must make $75 payment each month, then that is referred to as the Premium.

Read more about Insurance Premium at; https://brainly.com/question/1191977

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