What is an insurance deductible?

An insurance deductible is an amount of money that the insured person has to pay before an insurance company will pay for any further expenses. This amount is typically determined by the type of insurance policy, and can range from a few hundred dollars to a few thousand dollars. In Florida, there are mandatory minimum insurance deductibles for auto insurance policies. For example, a policy must have an $812 deductible for property damage and a $812 deductible for bodily injury. The insured person must pay the deductible before the insurance company will pay for damages related to an accident resulting from their policy. This deductible amount serves as a form of risk management, as it attempts to protect the insurance company from financial losses due to extensive claims. The higher the deductible is, the cheaper the insurance policy will be, since the policyholder is taking more of the financial risk.

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What is an insurance deductible?

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