If you have ever purchased insurance for your car, your house or medical bills, you have probably heard the word “deductible.” What does that word mean?
In short, the deductible is the amount of money that you pay out of your pocket before the insurance company pays their part of the claim.
If you have home or auto insurance, you pay a deductible each time you file an insurance claim for damages. Some companies will waive one of the deductibles if you have a claim for both home and auto insurance on the same day. This works out great for you, because it means less money comes out of your pocket!
If you have health insurance, you have an annual deductible. This is a little different than paying a deductible each time you have an insurance claim on your home or car. The health insurance company tracks your medical spending throughout the year, and applies the costs of the medical procedures towards your deductible. Your health insurance plan generally shows you the amount you will pay out of your own pocket during the plan year.
If you aren’t sure what your deductibles are, check with your insurance agent. Typically, the higher your deductible, the lower your insurance cost. Take a look at your plans and make sure you are comfortable with how things are set up!