What You Need to Know About Insurance Deductibles
Understanding insurance deductibles.
As you look through your health, auto, or homeowners insurance in Orange, California, you are bound to see the term “insurance deductible” popping up throughout each policy. But what is an insurance deductible and how does it affect your coverage? Here’s everything you need to know about insurance deductibles.
What is it?
An insurance deductible is the amount of money you agree to pay out of pocket towards an insurance claim before your coverage kicks in. For instance, say you have a home insurance deductible of $500 and your home sustains storm damage. If you want your insurance to cover these repairs, then you will have to pay $500 before your insurance will step in and cover the remaining cost of the claim. It’s also important to understand that your insurance deductibles and premiums have an inverse relationship. This means that the higher your deductible, the lower your premiums will be and vice versa.
Why does my deductible amount matter?
Most home and auto insurance providers offer policyholders the ability to adjust their deductibles whenever they need to. When choosing your deductibles, it’s important that you choose an amount that you can comfortably afford to pay. While many people set a high deductible to save money on their insurance premiums, this is a risky strategy. When you set your deductibles too high, then you risk not being able to access your insurance coverage when you need it most. This is why you are far better off choosing deductibles that you can readily afford to pay if necessary.
This is what you need to know about insurance deductibles. Do you have further questions regarding your health, auto, or homeowners insurance in Orange, California? Then don’t hesitate to contact the experts at Remland Insurance. Our dedicated team is ready to assist you with all your insurance needs.