Deductible

A deductible is the amount you agree to pay out of pocket on a covered claim before the insurance company pays the rest (up to policy limits).

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Simple example

If your deductible is $1,000 and a covered claim is$5,000, you typically pay $1,000 and the insurer pays$4,000 (subject to policy terms).

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Tradeoffs

• Higher deductible → often lower premium; you keep more risk on small claims
• Lower deductible → often higher premium; insurer steps in sooner

The “right” deductible depends on your cash reserves and how often you expect to claim — not a one-size slogan.

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Next step

Want help balancing premium vs. deductible? A licensed agent calls during business hours (Mon–Fri 9–5 CT):

• Auto / home / life quote
• Small business / commercial