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What usually happens to the amount of the premium if the deductible is lower compared to a policy with a higher deductible?
Wiki User
∙ 13y ago
The premium will generally increase.
Wiki User
∙ 13y ago
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What happens to an insurance premium when a deductible is lowered?
If a deductible is lowered the premium usually goes up
A higher deductible will usually mean a lower premium?
yes a higher deductible means a lower premium.
What happens to an insurance premium when a deductible is increased?
Your premium usually will go down a couple of dollars if you raise the deductible. EX. My deductible was $500 for collision and I changed it to $250. My premium went up $24 every six months. So basically your not going to save that much by increasing your deductible. Unless you have a very bad driving record.
What happens to an auto insurance premium when a deductible is lowered?
Depending on your driving record, there may be little change in your rate, however when you do utilize your insurer for a claim, you'll pay less out-of-pocket. If that is the only thing changing, decreasing the deductible will increase the premium. They have other expenses to service your policy, so the calculation isn't this simple, but if the insurance company's statistics predict you will submit 1 claim for $1000 damage every ten years, theoreticly they could give you free insurance if you selected a $1000 deductible since they would expect no payouts. If you lowered the deductible to $500, then they would expect to pay $500 sometime in the next ten years and would want a premium of $50 a year. If a deductible is lowered the premium usually goes up
Do Hospitals have a deductible?
Yes you usually have a deductible amount that you have to pay to the hospital.
Is there a deductible on liability insurance?
usually not
Is there a deductible on comprehensive coverage auto insurance?
Usually there is a deductible on comprehensive coverage auto insurance. The deductible can range in different amounts usually from 0 to $1000 or even higher if it is a very expense vehicle.
What factors are missing when using a cheap gps units compared to a premium gps?
Cheap GPS units usually don't react as quickly as premium ones. Also, depending on the service, the cheaper ones do not have options to find food or entertainment.
What is the difference between annual premium and installment premium?
The annual premium is paid once a year and the installment premium is usually paid monthly and usually has additional fees added which costs more than the annual premium.
Which is better 500 deductible or 1000 deductible?
It depends. If you plan on having a lot of claims against the insurance, 500 deductible is a better deal. If you only want the insurance to protect you from MAJOR disasters that don't usually happen in your life, 1000 deductible is much less money. For the difference in the cost of the insurance, I'd much rather have the 1000 deductible. I'd just put the difference in the cost of the premium into the bank and let it draw interest. Then, when/if I have a claim, I would use that money to make up the difference. In the end, it's all just a crap-shoot. Insurance companies are betting that you'll NOT cost them more than the premium that you pay, that's how they make money. On the other hand, we're ALL hoping that we never have to use the insurance but want them to take care of EVERYTHING if we have a problem.
Why do you have to pay a deductible?
An insurance deductible is a way for the insurance company to share a risk with the policyholder, and to reduce the premium payment required. By buying a policy with a $500 deductible, the policyholder agrees to be responsible for the first $500 of any covered loss. The insurance company is insuring only those losses exceeding $500, so they charge less for the premium. Most claims will be less than $500, or not much over, so their risk is reduced. You can usually buy a policy with a smaller deductible, or with no deductible at all. You will find those policies are considerably more expensive, as you're asking the insurance company to assume a greater risk. The general rule is that your deductible should be the largest amount you could cover with your own funds, should a loss occur. If you buy a collision policy for your car with a $500 deductible, and the car is destroyed, it will cost you $500 to replace it--the insurance company will pay the rest. So long as you can lay hands on $500, you know you'll have a car to drive. If you get through the policy term without the car being wrecked, you get to keep your $500, and the money you didn't pay for a higher premium with less risk.
Who pays the deductible if it's not an accident?
If the occurrence is not a traffic accident then it will most likely be a comprehensive claim and therefore if you have comprehensive coverage then you will pay your comprehensive deductible. The comp deductible is usually the lower of the two deductibles.
