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A deductible is your "skin in the game" so to speak. A way of reducing insurance premiums is to increase you're deductible, thereby reducing the risk of the insurance company. If you had an insured loss of $1000 and you had a deductible of $250, you would be paid $750 by your insurance carrier.
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What is the difference between deductible and premium?
The premium is what you pay for the policy. The deductible is what the insurance company will not pay for what is covered. For example you buy a car policy for collision. You pay the premium of $50. If you crash the car, the company will not pay any thing less than the deductible. If the deductible was $1000 and you sustained $1500 damage, the company would pay you $500. If the damage was less than the deductible, you get nothing.
What is the correct spelling of deductible or deductible?
deductible
Do you have to pay the full deductible even if the accident wasn't your fault?
Yes. If the claim is being made on your insurance. For example, if the damages are $2000 and there is a $500 deductible, the insurance company will pay $1500.
Is it deductible or deductible?
It is "deductible," except in Australia, where it's spelled "deductable."
Are federal taxes deductible on state taxes?
It depends on the state. For example in California the answer is no yet in Iowa the answer is yes.
What is meant by the term deductible?
The term deductible, when discussing insurance issues, applies to the amount of money you must pay out of pocket before your insurance coverage will pay for a claim. For example, if you have a $500 deductible on your homeowner's insurance policy and you have $1,000 worth of hail damage, you must pay your $500 deductible towards the damage and your insurance policy will kick in to pay the remaining $500 for repairs.
Which type of deductible requires a new deductible for each separate claim?
Straight Deductible
What is a family deductible?
Generally, it means that medical bills for all family members covered under the plan will count toward meeting the deductible. This is different from the majority of plans, because most insurance plans have a deductible that is per person, with a maximum for the family of either 2 or 3 times that amount. For example, if a family of 5 is covered under your insurance plan, and the deductible is $1000 with a maximum of 3 times the amount, and you have, say, a bad car wreck where everyone is hurt - you would have $3000 to pay to meet your deductible. If you had the same family, and the 'Family deductible' is $1000, you would have only $1000 to pay to meet the deductible, even if everyone was hurt.
When is auto deductible waived on a collision claim?
When you file a claim against your own company you must pay the deductible. Your company may pay you back the deductible only in cases where they go after someone else who was responsible for the damage and your company manages to collect for that damage. Some (not all) companies may also waive the deductible if the insured made no claim in the past 1 or 2 years, for example.
What does after deductible mean?
"After deductible" means you will not get coverage or certain benefits until a deductible has been met. Insurance policies often have more than one deductible. For example, you may have a $1,000 per year deductible for certain medical expenses, and another deductible for prescription drugs. If your prescription drug deductible is $500 per year, you will have to pay out of pocket the first $500 of drug cots before your plan will kick. Many plans have complicated formulas for how deductibles are applied and how they are met so there is no one answer. But "after deductible" always means that the person with the insurance policy will have to pay something first, before getting reduced-cost, free, or co-pay services and drugs. Source: Women in Business (http://www.womeninbusiness.about.com)
Do you have to pay the deductible if you hit another car?
If your policy contains a Deductible clause then yes you will have to pay your deductible.
What does a deductible mean if you are in a car accident?
A deductible, or insurance deductible, is an amount of money the first of which the insurance company will not pay towards the cost of the loss suffered. For example, a $500 deductible means that the insurance company will not pay the first $500 of a loss. Deductibles are made for the purposes of keeping the costs of insurance down by making the insured pay a certain amount of money and not make a claim towards minor losses. If the accident is the other person's fault, either their insurance company will pay that deductible or you can sue them in court.
