What is an insurance deductible?

An insurance deductible is a fixed dollar amount that you, as an insured person, must pay before your insurance provider will start to cover your losses. This means that a deductible is the amount of money that you must pay out-of-pocket before your insurance provider will cover the rest of the claim amount. For example, if you have an auto insurance policy with a $250 deductible, you would need to pay the first $250 in losses before your insurance provider would kick in to cover the remainder. The purpose of an insurance deductible is to reduce the amount of insurance premiums an individual needs to pay. In order for an insurance provider to offer coverage at a competitive rate, they need to limit their potential losses. To do this, insurance providers require the insured person to share part of the cost of the claim, up to the amount of the deductible. This means that the insured person will pay a smaller premium, but will need to pay the deductible amount out-of-pocket for every claim. In the state of Idaho, insurance deductibles come in a variety of sizes and are determined by the individual insurance provider. When looking to purchase insurance, it is important to shop around and read the policy details to ensure that the deductible is affordable for your current situation.

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What is an insurance deductible?

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