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A lower deductible means that the insured pays less out-of-pocket before insurance coverage kicks in, which provides greater financial protection in the event of a claim. However, this safety comes at a cost; insurance companies typically charge higher premiums to offset the increased risk and potential payout associated with lower deductibles. Consequently, individuals must balance their immediate monthly costs against their potential financial exposure during unforeseen events. Thus, choosing between a lower deductible and higher premium involves weighing the benefits of reduced out-of-pocket expenses against higher ongoing insurance costs.
What else can I help you with?
A higher deductible will usually mean a lower premium?
yes a higher deductible means a lower premium.
Difference between a deductible and a premium?
A premium is the amount of money you pay the auto/health insurance company monthly, quarterly, or biannually whether or not you get in an accident or go to the hospital. The higher your premium the lower your deductible, and the lower your premium the higher your deductible. A deductible is the amount of money after you get in a car accident or visit the hospital before your insurance company pays anything. After you have met your deductible the insurance company covers the rest of the expenses.
What usually happens to the amount of the premium if the deductible is lower compared to a policy with a higher deductible?
The premium will generally increase.
Which of these will not cause your insurance premium to be higher?
Having a high deductible will not cause your insurance premium to be higher.
What is a premium for auto insurance?
Your premium is pretty much your monthly bill, after deciding what type of deductible you plan on choosing. The higher deductible the lower your premium will be.
what is an deductible?
A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. It can be considered to be an amount for which the insured has agreed to "self-insure". In general, there is a correlation between deductibles and premium, in that a higher deductible will correlate with a lower premium.
What is an insurance deductible?
A deductible is the amount that the insured has agreed to pay before the insurer is obliged to pay anything on a covered claim. It can be considered to be an amount for which the insured has agreed to "self-insure". In general, there is a correlation between deductibles and premium, in that a higher deductible will correlate with a lower premium.
An insurance policy with a higher premium most likely has?
a lower deductible
What should your Deductible for car insurance be?
Well the higher your deductible, the lower your insurance premium will be. However, your deductible should be something you can afford in case of a loss.
How to you deal with the deductible when you are fault free?
not sure what 'deal with '' means, you chose your deductible when you buy the policy (higher the deductible lower the premium on coll and comp)..if your collision or comprehensive coverage are used (regardless of fault) then your deductible will apply.........
Is it better to get a low deductible insurance policy for my teenage son?
A low deductible will mean higher premiu. Your premium will already undoubtably be high with a teenage driver on your policy so you may want to consider it.
How do deductibles work for health insurance?
A deductible is the amount of your actual, billed health care costs that you must pay before the insurance will kick in. Your premium does not count towards your deductible. The higher your deductible, the more you have to pay before your insurance will start to cover your bills.
