Insurance Term
Deductible
The amount the insured must pay out-of-pocket before the insurance company begins to pay for a covered loss.
Detailed Explanation
Deductibles help reduce the number of small claims and lower premiums. Generally, higher deductibles result in lower premiums, while lower deductibles result in higher premiums.
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Practice QuestionEasy
Which of the following best describes the concept of Deductible?
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