What is an insurance deductible?

An insurance deductible is the amount of money that a policyholder is responsible for paying out of pocket when they make a claim on an insurance policy. In Maryland, the minimum deductible amount is typically set by the insurance company, and is paid by the policyholder prior to the insurance company paying out the rest of the claim. For example, if the policyholder has a $500 deductible, they will have to pay the first $500 of the claim out of pocket before the insurance company will pay it. The benefit of a deductible is that it helps keep insurance premiums lower by reducing the risk to the insurance company. Although you will be responsible for the deductible amount, it will be much less than the full amount of the claim and can help to reduce the financial burden that comes with an unexpected expense.

Related FAQs

What is an insurance deductible?
What is the difference between an insurance policy and a contract of insurance?
What types of insurance are covered by insurance law?
What is the process of obtaining an insurance license?
What types of damages are covered by insurance?
What are the legal requirements for filing a claim?
How does the law protect insurance policyholders?
What is an umbrella policy?
What is an insurance broker?
What is the difference between a surety bond and an insurance policy?

What is an insurance deductible?

Related FAQs

Related Blog Posts