What Are Deductibles In Insurance?
An insurance deductible is the amount taken out of an insurance policy when you make certain types of claims. Writing for Forbes Advisor, BCG’s Snehil Gambhir explains how this “out-of-pocket” is intended to be the threshold amount of the insured loss over which the insurance company’s liability kicks in. The insurer pays the policy holder as per the limits and features in a policy document and spelt out in the terms and conditions. Typically, the higher the deductible amount the lower the insurance premium one pays, while ensuring “no claim” bonuses as it deters claims for small expenses.