What Is an Insurance Deductible?
Understanding insurance deductibles — how they work, how to choose the right amount, and how your deductible affects your insurance premium.
304-459-2555What Is an Insurance Deductible?
An insurance deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and file a $2,000 claim, you pay $500 and your insurance pays $1,500.
How Deductibles Affect Your Premium
There is an inverse relationship between your deductible and your premium — a higher deductible means a lower premium, and vice versa.
- $250 deductible = higher premium
- $500 deductible = moderate premium
- $1,000 deductible = lower premium
- $2,500 deductible = significantly lower premium
Choosing the Right Deductible in WV
The right deductible depends on your financial situation and risk tolerance. Choose a deductible you can comfortably afford to pay if you need to file a claim. Generally, if you have savings to cover a higher deductible, you can save money on premiums.
Frequently Asked Questions
Should I choose a high or low deductible?
Choose a deductible you can afford to pay if you need to file a claim. If you have savings and rarely file claims, a higher deductible can save you money on premiums. If you prefer lower out-of-pocket costs when something goes wrong, choose a lower deductible.
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AG Insurance & Financial Solutions | 304-459-2555 | Huntington, WV