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Deductible
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Deductible
In an insurance policy, the deductible or excess is the portion of any claim
that is not covered by the insurance provider. It is normally quoted as a fixed
amount and is a part of most policies covering losses to the policy holder. The
deductible must be "met", that is, paid by the insured, before the benefits of
the policy can apply.
In a typical automobile insurance policy, a deductible will apply to claims
arising from damage to or loss of the policy holder's own vehicle, whether this
damage/loss is caused by accidents for which the holder is responsible,
vandalism or theft. Third-party liability coverage generally has no deductible,
since the third party will likely attempt to recover any loss, however small,
for which the policy holder is liable.
Most health insurance policies and some travel insurance policies have
deductibles as well. Typically, a general rule is: the higher the deductible,
the lower the premium, and vice versa. The type of health insurance deductibles
can also vary, as individual amounts and family amounts. Major medical insurance
policies are known for often having a deductible which does not cover the cost
of routine visits (e.g., to a doctor's office).
For example, a person might have an auto insurance policy with a $500 deductible
on collision coverage. If this person were in an accident that did $800 worth of
damage to the car, then the insurance company would pay him or her $300. The
insured is responsible for the first $500 of damage (the deductible), and the
insurance company pays the balance.
There are also deductible reimbursement programs that reimburse a deductible in
the event of an auto, home, or health insurance claim.
Car and auto insurance quotes - online information on car and auto insurance quotes: carandautoinsurancequote.com
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