What is an insurance deductible?

An insurance deductible is a set amount of money that you must pay for a claim before your insurance will start to pay for anything. For example, if you have a $500 deductible, then you must pay the first $500 of a claim before the insurance company will start paying. Deductibles are usually set as part of an insurance policy, and the higher the deductible, the lower the premium. This means that if you choose to increase your deductible, your monthly insurance costs will go down. Deductibles are usually set in relation to the value of the policy. In California, the state requires that an insurance policy include a deductible. The deductible may vary depending on the policy and the type of claim being made.

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What is an insurance deductible?

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