# MANAGEMENT

## BUISENESS MANAGEMENT

### INSURANCE

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Your auto insurance policy has a \$200 monthly premium and \$700 deductible. What is the maximum amount you will have to pay out-of-pocket for a car accident before your insurance covers your costs?
 A \$200 B \$500 C \$700 D \$900
Explanation:

Detailed explanation-1: -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-2: -You choose your deductible amount when you buy a car insurance policy. Deductible choices typically range from \$250 to \$2, 000, with \$500 representing the most common deductible choice. A lower deductible-such as \$250 or \$500-will mean higher auto insurance rates.

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: -Let’s say you’re in a covered car accident. Your deductible would be the amount of money you pay out-of-pocket before your policy kicks in. But, every policy type only covers up to a certain amount. This is called a limit.

There is 1 question to complete.