May 13 Insurance Business Benefits Security Protection Concept

Delving Your Deductible

Do You Know How To Best Use Your Deductible?

If you have ever taken out an insurance policy, you know that there is a thing called a deductible. Beyond that, a lot of people’s knowledge falls off. What, exactly, is an insurance deductible? What is the point of it? How can I best use mine?

If you have asked yourself these questions, we have answers for you. The deductible is the amount that is deducted (get it?) after you experience an insured loss. The point of the deductible is to create a way for you and your insurance provider to share the risk. Say, for example, you get into a car accident. Your deductible is the amount you pay, deducted from the amount of coverage you will receive from your insurer, thereby helping you assume some of the cost and, as a result, some of the risk.

Why would anyone want to raise their deductible? Because the higher your deductible (i.e. the more risk you assume), the less risk for your insurance provider and, consequently, the cheaper your policy will be. Setting your insurance deductible at the highest amount you could comfortably pay as a one-time cost should you need your coverage to kick in will help you keep your premiums low all year.

Essentially, the deductible is a way you share some of the risk with your insurance provider. It is also a tool that allows you to have control over the premiums you pay.

Determining the exact level at which to set your deductible to best protect yourself and your wallet can be a bit challenging. To get the expert guidance you need to have confidence in your decision, contact Weeks & Associates Insurance Services. Our Thousand Oaks team is dedicated to helping you get the best California coverage, and an understanding of that coverage.

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