October 2016

17 Oct 2016

A discussion about deductibles

If you have any kind of insurance - and who doesn't - you have likely paid or at least, discussed a deductible with your insurance provider. The basics are pretty easy to understand: You, as the policyholder, agree to pay a certain amount or percentage toward the overall claim paid by your insurer. In the case of auto or home insurance, the amount of your deductible usually ranges from a few hundred to a few thousand dollars. But why do deductibles exist anyway? It's a matter of shared risk. The insurer pays the claim, and in turn, you are rewarded with a lower insurance premium. Generally, the higher the deductible, the lower your premium cost. While it may not seem like much,...
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