What is an insurance deductible?

An insurance deductible is an amount of money that the insured must pay before their insurance company will cover the remaining costs of the claim. It is one of the ways insurance companies reduce their risk and manage their costs. In Nevada, the deductible amount is set by the insurance company when the policy is purchased. Generally, the higher the deductible, the lower the premium for the policy. For some types of insurance, such as health or auto insurance, the deductible must be met each year before the insurance company will cover the remaining costs of the claim. The insured is responsible for paying the deductible amount out-of-pocket. Once the deductible amount is paid, the insurance company will generally cover the remaining costs of the claim up to the policy limits. It is important to understand the specific details of your policy before filing a claim, so you know how much you will be responsible for out-of-pocket.

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What is an insurance deductible?

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