What is an insurance deductible?

An insurance deductible is a predetermined amount of money that you must pay out of pocket when filing an insurance claim. It is the amount of money you agree to pay for a claim or repair before your insurance company covers the remainder of the cost. In New Mexico, the deductible is typically associated with health, home, and auto insurance policies. When it comes to health insurance, a deductible is the amount of money that must be paid by an insured individual before their health insurance company begins paying a portion of the medical expenses. The amount of the deductible and the amount the insurance company pays may vary depending on the type of policy and the specific company. When it comes to home insurance, a deductible is the amount of money that must be paid before the insurer will cover the cost of any damages to the property. Homeowners need to select the amount of the deductible when they purchase the policy. Auto insurance deductibles vary depending on the coverage selected. Deductibles for collision coverage are typically higher than deductibles for comprehensive coverage, which typically covers damages caused by non-collision events such as theft and weather-related incidents. The costs associated with these types of coverage vary depending on the amount of coverage purchased. In summary, a deductible is the predetermined amount of money you must pay before your insurance company covers the balance of the claim or repair. This amount will vary depending on the type of insurance purchased and the specific company, but understanding it is an important part of the insurance process.

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What is an insurance deductible?

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