What is an insurance deductible?

An insurance deductible is the amount of money a person must pay out-of-pocket before their insurance company will begin to pay for medical expenses or repairs. In other words, a deductible is a set amount of money that a person must pay off before the insurance company will provide additional coverage. In Washington, the amount of a deductible depends on the kind of insurance policy the person has. When an insurance policy is purchased, the customer will have to choose an amount for their deductible. The higher the deductible, the lower the premium payment. Generally, a lower deductible means the customer will pay their insurance company more for the policy each month, but will not have to pay as much out-of-pocket if something goes wrong. On the other hand, a higher deductible means the customer will pay less money in premiums each month, but will need to pay a larger amount out-of-pocket if something happens. It is important to understand what an insurance deductible is before signing an insurance policy. It is important to know how much of the cost you will need to pay in the event of an accident or illness. This will help you make an informed decision regarding your insurance policy and a deductible will help contribute to financial protection.

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