What You Need to Know About Insurance Deductibles

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Deductibles 101

While most people know that their insurance policies have a deductible, not everyone fully understands what that means, which can lead to some confusion. Knowing exactly what an insurance deductible is and what it means for your wallet can help to ensure that you choose the right deductible for your specific needs.

A deductible is the amount that you have to pay when you make a claim to your insurance company before your insurance coverage kicks in. Deductibles help you share the risk between you and your insurance company. When you make a claim to your insurance company, your deductible is the amount that you have to pay out of your own pocket before your insurance company will start providing coverage.

Your deductible can either be a specific dollar amount or a percentage of the complete amount of your insurance policy. Typically, the larger your deductible is, the lower your premiums will be each month. When choosing your deductible, it is important to make sure that you choose an amount that you will be able to afford at any given time. The amount of your deductible will be found on the declaration page of your home and auto insurance policy.

Deductibles for property damage claims are slightly different than deductibles for health insurance. With your health insurance policy, you have one deductible that you have to meet for the whole year. With property damaged deductibles, such as with your auto and homeowners insurance policy, you will have to pay your deductible each time you make a claim.

For any questions you have about your deductibles, contact Desert Empire Insurance in Palm Desert, California. We will work with you to make sure that you find the right insurance policies and deductibles, all at the right price to fit your budget.