Last updated on November 22nd, 2016 at 04:51 pm
Getting a deductible on your policy is one of the ways to make it more affordable. However, don’t get yourself too exposed- we’re here to sort it out for you.
What is deductible?
Having a deductible on the insurance policy means that you agree to share the expenses in case of a claim. Insurance companies introduced deductibles to avoid a large number of small claims. On the other hand people select deductibles to pay less for insurance.
There are several types of deductible
Per claim deductible
Applies when the customer pays the deductible amount for each separate incident. It is the most common type of deductible among the travel insurance companies
Per policy deductible
Implies that the insured must pay the deductible only once during the period of the policy and the rest of the covered expenses are paid by the company.
Health insurance deductible: How do they work?
If you have a deductible of $100 and you claim $500 for your medical expenses for an injury- you will have to pay the deductible first and the rest is covered by your insurance company.
It works pretty much the same for auto and property insurance: If your collision deductible is $500, the price for repair is 3000$ then you will pay $500 and the insurer will cover the rest.
Choose a deductible type