What is Deductible?A deductible is that part of a covered loss which will be paid by you. It is a fixed amount of money and is decided at the time of making the policy. First, you need to pay this amount. Then your insurance company will start paying for the remaining amount of your loss. A deductible helps to lessen the processing costs associated with small claims. For example, a ‘$500 deductible’ means that you will pay the first $500 of ‘the total covered cost of repair and medical treatment’. The company will pay the rest of the amount. The amount of deductible could be any of the following: $100, $250, $500, $1000, depending on the policy. |
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