An insurance deductible is the amount a policyholder may pay toward a covered loss before the insurer contributes, subject to the policy terms. Deductibles may be fixed amounts or percentages.
How deductibles affect premiums
A higher deductible may lower the premium, while a lower deductible may increase it. The right choice depends on your budget and ability to pay after a loss.
Questions to ask
Check whether different risks have separate deductibles, whether the deductible applies per claim or per policy period, and how deductibles work for special endorsements.
Always confirm the exact deductible in the policy documents. This is general information, not financial advice.