We wanted to spend some time answering your questions and the questions we commonly hear from people when we tell others that we work in insurance. Our question for this post is pretty straight forward. Do you know what a deductible is or does?
A deductible is a fixed amount of money that someone must pay out of their own pocket before their insurance coverage begins to pay for a claim. It is a common of many different types of insurance policies, such as health insurance, car insurance, and homeowner’s insurance.
For example, let’s say you have a car insurance policy with a $1,000 deductible. If you have an accident that is covered and the total cost of the claim is $1,500, you would be responsible for paying the first $1,000, and your insurance policy would cover the remaining $500. After you’ve met your deductible, your insurance policy would typically pay a portion of the remaining costs.
Deductibles are typically set by the insurance company and can vary depending on the type of policy and the coverage provided. Higher deductibles generally result in lower monthly premiums, but may require you to pay more out of pocket if you have a claim.
If you still have questions please give us a call so we can answer them for you. We pride ourselves on staying up to date on all things insurance. Our number is 517-351-9117. #teammllins #insurancenerds #insurance #blogging #deductibles #insuranceblog