MANAGEMENT

Detailed explanation-1: -You have a $500 deductible and $3, 000 in damage from a covered accident. Your insurer will pay $2, 500 to repair your car, and you’ll be responsible for the remaining $500. Comprehensive and collision are the two most common car insurance coverages that include deductibles.

Detailed explanation-2: -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-3: -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-4: -A health insurance deductible is the amount you pay before your insurance kicks in. For example, if you have a $1000 deductible, and you need a $1000 MRI procedure and a $2000 surgery, you will pay $1000 out-of-pocket for the MRI, and then $0 for the surgery.

Detailed explanation-5: -You’ll pay your deductible payment directly to the medical professional, clinic, or hospital. If you incur a $700 charge at the emergency room and a $300 charge at the dermatologist, you’ll pay $700 directly to the hospital and $300 directly to the dermatologist. You don’t pay your deductible to your insurance company.