What are the different types of insurance deductibles?

What are the different types of insurance deductibles?

There are several types of insurance deductibles, including fixed, percentage, and per-incident deductibles. Would you like to know more about each type?

Yes, please explain fixed and percentage deductibles.

A fixed deductible is a set amount you pay out of pocket before insurance kicks in, while a percentage deductible is a portion of the claim amount. For example, if you have a 20% deductible on a $1,000 claim, you'd pay $200.

What about per-incident deductibles?

Per-incident deductibles require you to pay a set amount for each claim. For instance, if you have a $500 per-incident deductible, you'd pay that amount for each separate claim you file.

Are there any advantages to having a higher deductible?

Yes, higher deductibles often lead to lower premium costs, but they also mean more out-of-pocket expenses when you file a claim.