05/30/2025
Deductibles are a key part of your home and car insurance policies. When you have an insurance claim, your deductible is the amount of money you pay for repairs before insurance starts paying.
❔-- How does a deductible work?
When you buy an insurance policy, you’ll select a deductible amount that you're comfortable paying. Your insurance company will use this amount to set your premium.
If something happens to your covered home or car, you’ll file an insurance claim. Your insurance company will take your deductible amount out of the total payout of the claim.
❔-- How do deductibles affect rates?
Your chosen insurance deductible will impact the premium you pay for your insurance policy. In general, if you choose a higher deductible, you'll have a lower premium, and vice versa.
❔-- How do I set my deductible?
Standard home insurance uses dollar-amount deductibles. Remember, this is the amount you'll pay out of pocket if you have a claim, so think about your budget and how much risk you're willing to take when selecting a deductible.
❔-- Why do I have to pay a deductible?
Insurance deductibles play a key role in how insurance works. You pay a deductible to help:
• Control insurance costs
• Encourage responsible behavior
• Prevent fraud
As always, contact me so I can help you choose the right deductible for your home and auto insurance needs.
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