Understanding Your Insurance Deductible
Understanding Your Insurance Deductible Understanding the role deductibles play when insuring a car or a home is an important part of getting the most out of your insurance policy. A deductible is basically the amount “deducted” from an insured loss. Deductibles have been an essential part of the insurance contract for many years and represent a sharing of the risk between the insurance company and the policyholder. When repairing your home or replacing personal possessions, the amount of the deductible would come out of your own pocket. A deductible can be either a specific dollar amount or a percentage of the total amount of insurance on a policy. Generally speaking, the larger the deductible, the less a consumer pays in premiums for an insurance policy. Deductible amounts can be found on the declarations (or front) page of standard homeowners and auto insurance policies. Here is how it works: if you have a $500 “dollar deductible,” that $500 wo...