MANAGEMENT

Detailed explanation-1: -With a $500 deductible, you would only pay $500 towards the repairs, while your insurance company would pay the rest.

Detailed explanation-2: -Percentage deductibles generally only apply to homeowners policies and are calculated based on a percentage of the home’s insured value. Therefore, if your house is insured for $100, 000 and your insurance policy has a 2 percent deductible, $2, 000 would be deducted from any claim payment.

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.