What does deductible mean in insurance?

What does deductible mean in insurance?

A deductible is the amount you pay out of pocket before your insurance kicks in. For example, if you have a $500 deductible, you pay the first $500 of a claim.

How does a premium differ from a deductible?

A premium is the amount you pay for your insurance policy, usually monthly or annually, while a deductible is what you pay when you make a claim.

Can you explain what a copayment is?

A copayment, or copay, is a fixed amount you pay for a specific service, like a doctor's visit, at the time of service.

What is the difference between liability and comprehensive coverage?

Liability coverage pays for damages you cause to others, while comprehensive coverage protects your own vehicle from non-collision incidents like theft or weather damage.

Are there any common exclusions in insurance policies?

Yes, common exclusions include damage from natural disasters, wear and tear, and certain high-risk activities.