Review:
Deductible
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
A deductible is the amount of money that a policyholder must pay out-of-pocket before their insurance company begins to cover the costs of a claim.
Key Features
- Out-of-pocket payment
- Insurance coverage begins after deductible is met
Pros
- Can lower insurance premiums
- Encourages responsible use of insurance
Cons
- May be costly for policyholder
- Can lead to financial strain in case of large claims