What is a policy deductible?

A policy deductible is a predetermined amount of money a policy holder must pay out of pocket in order to receive money from an insurance company for a claim. For example, if a policy holder in North Carolina has a $500 deductible, they must pay $500 in order for the insurance company to pay for all or a portion of the remaining costs. Deductibles are typically used in health insurance, car insurance, and other types of insurance claims. Deductible amounts vary and can be found in the policy holder’s insurance contract. As a general rule, the higher the policy deductible, the lower the policy premium or cost. Therefore, if one wishes to lower their policy premiums, they can choose to raise their policy deductible. Ultimately, the policy holder must decide which deductible is the right fit for them based on their financial situation and individual needs.

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What is a policy deductible?

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