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.

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What is an insurance deductible?

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