What is an insurance deductible?

Insurance Deductibles Explained

Here’s what you need to know about insurance deductibles.

Whether you’re looking at your health, auto, or homeowners insurance in Plano, Texas, you’re bound to see the term “deductible” popping up all over your policies. But what is a deductible and how does it affect your coverage? Here’s everything you need to know about insurance deductibles.

What is it?

A deductible is the amount of money you agree to pay out-of-pocket towards an insurance claim before your coverage kicks in. Generally, your insurer will provide a range of deductibles to choose from and you pick the amount that you can comfortably afford. It’s also important to know that your deductible affects your insurance premiums. The higher deductible you assume, the lower your premiums will be, and vise versa.

Why does your deductible amount matter?

If you ever need to file a claim, you need to have your deductible amount ready before your insurer will step in and cover the remaining cost of the claim (up to your policy’s limits). This is why it’s important to set a deductible amount that you can actually afford. If you set it too high, then you risk not being able to access your coverage when you need it the most.

Can I change my deductibles?

With most auto and home insurance companies, you have the ability to change your deductibles whenever you need to. However, there are some exceptions. For instance, if you live in an area prone to certain natural disasters such as hurricanes, then you might be required to pay a specific percentage deductible rather than the normal dollar deductible. Percentage deductibles may not be changeable because they are based on a percentage of your policy’s coverage limits.

Here’s what you need to know about your insurance deductibles.  Do you have more questions regarding your health, auto, or homeowners insurance in Plano, Texas?  Then don’t hesitate to contact us at Tri-Star Insurance/HUB International.  Our dedicated team is ready to assist you with all your coverage needs.