What is a deductible?
A.When a claim occurs, you are required to pay the first portion of the cost to repair or replace the insured property. This fixed amount is the deductible you selected. The insurance company pays the remainder of the claim. Deductibles are used as a method to stretch your insurance dollars. The greater the deductible amount you agree to pay for each claim, the lower your insurance premium. This can sometimes add up to a significant savings. However, you must decide how much of any claim you are willing and able to pay for to determine your deductible. We’d be glad to help you re-assess the deductibles you’ve chosen to see if they match your current needs. Back to list. Q.Do I need to save all my receipts in the event of a claim? A.Receipts are helpful in establishing a value for a lost item, but the insurance companies don’t require them. In most cases, the insurance company will ask you to compile a list of the lost or destroyed items and their approximate value. The company will the
In insurance policy terms, a deductible is the amount of money which the insured party must pay before the insurance company’s own coverage plan begins. In practical terms, insurance companies include a deductible in their policies to avoid paying out benefits on relatively small claims. A typical auto insurance policy, for example, may carry a $500 deductible. If the owner of that car accidentally hits another car while parking and both drivers agree the damage is minimal, he or she would pay the $500 repair bill out of his or her own pocket. Insurance companies would not encourage a claim for such minor damages. However, this payment of $500 means that the next accident claim would be covered by the insurance company. The car owner is said to have ‘met the deductible’ and is now eligible for complete protection. The same holds true for medical insurance. Patients who visit the emergency room for a minor injury or procedure would have to pay out of pocket until they have reached the l
A “deductible” is a specific dollar amount that your health insurance company may require that you pay out-of-pocket each year before your health insurance plan begins to make payments for claims. Not all health insurance plans require a deductible. As a general rule (though there are many exceptions), HMO plans typically do not require a deductible, while most Indemnity and PPO plans do.
