Chances are good that you've heard the term deductible or even paid a deductible before if you've had an insurance claim in the past. But, what is a deductible. But, what else do you know about deductibles? Is there anything else to know? Watch as Kelsey from Armour Insurance's Edmonton branch answers my questions on deductibles.
What is a Deductible Anyways?
A deductible is the portion of the claim that you would have to pay out of pocket when a claim is made. After the deductible the insurance company covers the cost up to any limits that are on your policy. Most insurance policies will have a deductible associated with them. Some types of policies that you'll see a deductible on are home insurance, auto insurance and even travel insurance policies.
How Much Does a Deductible Cost?
You deductible amount will fluctuate based on a number of factors, but we commonly see deductibles for home and auto insurance in the range of $500 to $2,500. Here are some common deductibles that we see:
- Home Insurance - $1,000
- Tenants Insurance - $500
- Auto Insurance Collision - $500
- Auto Insurance Comprehensive - $250
How is Your Deductible Determined?
In many cases, you can choose your deductible amount. There are some instances where the insurance company may require a higher deductible depending on factors including the vehicle you drive or your driving history.
How Does your Deductible Affect Your Premium Amount?
When you go with a higher deductible this lowers the chances that frequent, lower value, claims will be made against the policy. Because of this your premium is generally lower. This varies from case to case and your broker can help you find a balance between deductible and premium amounts.
If you have questions regarding your deductible or insurance policy in general, we'd be happy to help. Give us a call at 1-855-475-0959.