What is a policy deductible?

A policy deductible is an amount of money that a policyholder must pay out of pocket for a covered claim before the insurance company will pay out on the claim. In California, policy deductibles are generally specified in the insurance policy agreement. For example, if an insurance policy has a $500 deductible, the policyholder must pay the first $500 of an eligible claim before the insurance company will pay out the remaining cost. Deductibles tend to increase with the total amount of the coverage on the policy. Generally, the higher the policy’s coverage limit, the higher the deductible. It is important to read your policy agreement to understand the deductible requirements before filing a claim. Some insurance companies may also offer discounts if the policyholder has a higher deductible.

Related FAQs

What is a statement of fact?
How do I dispute an insurance claim decision?
What evidence is needed to prove an insurance claim?
What is required for an insurance company to act in good faith?
What is a liability limit?
What is an assignment of benefits?
What are the types of damages that can be recovered in an insurance claim?
What are the types of defenses in an insurance claim?
How do I negotiate a settlement with an insurance company?
What is an assignment of rights?

What is a policy deductible?

Related FAQs

Related Blog Posts