MANAGEMENT

Detailed explanation-1: -A car insurance deductible is what you have to pay out of pocket to cover damages from an accident before the insurance company covers anything. For example, if you have a $500 deductible, you’ll have to pay that $500 out of pocket before your insurer will put a dime toward damages.

Detailed explanation-2: -A low deductible of $500 means your insurance company is covering you for $4, 500. A higher deductible of $1, 000 means your company would then be covering you for only $4, 000. Since a lower deductible equates to more coverage, you’ll have to pay more in your monthly premiums to balance out this increased coverage.

Detailed explanation-3: -The amount you pay for covered health care services before your insurance plan starts to pay. With a $2, 000 deductible, for example, you pay the first $2, 000 of covered services yourself. A fixed amount ($20, for example) you pay for a covered health care service after you’ve paid your deductible.

Detailed explanation-4: -In the event of an accident wherein the insured person causes damage to the third party car, the insurer will provide coverage of up to Rs 7.5 lakh for the third party.