A deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses. For example, if you have a health insurance policy with a $1,000 deductible and you receive a medical bill for $2,000, you would be responsible for paying the first $1,000 and your insurance would cover the remaining $1,000. Deductibles can vary widely depending on the type of insurance policy, the level of coverage, and other factors. Some insurance policies, such as liability insurance, may not have a deductible at all, while others, such as homeowners or auto insurance, may have a higher deductible in exchange for lower premiums.

It is important to understand your insurance deductible because it can have a significant impact on your out-of-pocket expenses. Policies with lower deductibles typically have higher premiums, meaning youll pay more each month for your insurance coverage. However, if you have a higher deductible, you may be able to save money on your premiums but may be responsible for paying more out of pocket if you need to file a claim.

Here are some key points to keep in mind about deductibles:

• A deductible is the amount of money you pay for covered expenses before your insurance policy starts paying.
• Deductibles can vary widely depending on the type of insurance policy, the level of coverage, and other factors.
• Policies with lower deductibles typically have higher premiums, while policies with higher deductibles usually have lower premiums.
• Deductibles generally apply to property damage, not to the liability portion of homeowners or auto insurance policies.