General insurance What is deductible in insurance?

[Lens1000]

A deductible is the amount you pay towards an insured loss when you insure your property and a damage occurred. This is a risk sharing between the insured and the insurer.

The amount of the deductible is determined by the terms of coverage. The higher the deductible the lesser the insurance premiums. It is advisable that you choose a favourable deductibles taking into consideration the premium payment.

If your insurance policy states the deductible to be $300 and the worth of the insured loss is $5,000, the insurer will pay you claim of $4,700. Deductible is often applied when you claim auto insurance and homeowner policy.

One a last note, you will be responsible for the deductible when there is loss or damage.

 

[btaliat]

Is deductible differs from premium? And if it is not, to me it will be a situation of double taxation because since the insured will pay premium, why still paying deductible whenever a damage occurs? Or may he i don't get when to pay premium and when to pay deductible.

 

[Jamoflondon]

And someone will still want to convince me that insurance is not just about the profit they are trying to make from their customers or insured as they call it. So what do we call this? After the insured pays the so called premium, so there is still likely to be a deductible to pay by the insured

 

[Mandy96]

I think everyone interested in opting for insurance should know more about this. Insurance cannot cover all your losses because this is why there is policy for every kind of insurance out there. This is why you have to know more about insurance before you to choose to opt for it

 

[Good luck]

I think deductible is one of the premium that the insurance company use to give their customers when they partner with them and I think they do it to all their policy plan for customer to patronize them.they will deduct some amount of money from what you are supposed to pay so as to win their heart and get them into Their system.

 

[Lens1000]

Is deductible differs from premium? And if it is not, to me it will be a situation of double taxation because since the insured will pay premium, why still paying deductible whenever a damage occurs? Or may he i don't get when to pay premium and when to pay deductible.

Deductible is a risk sharing in insurance. It means you will have to pay certain percentage to when damages occur. Deductible is common to auto insurance and homeowner insurance.. it's very pertinent to confirm the percentage of deductible before you buy any policy.

 

[Lens1000]

And someone will still want to convince me that insurance is not just about the profit they are trying to make from their customers or insured as they call it. So what do we call this? After the insured pays the so called premium, so there is still likely to be a deductible to pay by the insured

I have experienced one, then, I don't really know how insurance works but the insurance company removed 100k from my claim. I insured my POS machine and it was stolen. I was supposed to claim 230k but I was paid 130k and i was given new POS terminals.

 

[Lens1000]

I think everyone interested in opting for insurance should know more about this. Insurance cannot cover all your losses because this is why there is policy for every kind of insurance out there. This is why you have to know more about insurance before you to choose to opt for it

You are right ! 98% of the insured believed that the insurance company will bear all the risk . Understandably, it's the insurance company takes the larger percentage risk but so many people believed that all the risk is on the insurance company . Normally, the deductible is quoted on the agreement terms and it advisable you reach an agreement with the insurance company

 

[Lens1000]

I think deductible is one of the premium that the insurance company use to give their customers when they partner with them and I think they do it to all their policy plan for customer to patronize them.they will deduct some amount of money from what you are supposed to pay so as to win their heart and get them into Their system.

Not atall , the deductible is not a premium but it's a term used for risk sharing in insurance and it's very important to know the deductible before buying policy. . It's common with auto insurance and homeowners insurance. Once you have decided to opt in for this type of insurance, all you need do is to discuss the deductible. The bottom line is that it's very important to take note of this.

 

[Good luck]

Not atall , the deductible is not a premium but it's a term used for risk sharing in insurance and it's very important to know the deductible before buying policy. . It's common with auto insurance and homeowners insurance. Once you have decided to opt in for this type of insurance, all you need do is to discuss the deductible. The bottom line is that it's very important to take note of this.

I see.. A lot of people are just into insurance policy without knowing what a deductible is.People really need to given a good orientation about the risk of this term deductible to be may to know what they are investing on and how to plan ahead for it to avoid unnecessary complications later in future.

 

[Lens1000]

I see.. A lot of people are just into insurance policy without knowing what a deductible is.People really need to given a good orientation about the risk of this term deductible to be may to know what they are investing on and how to plan ahead for it to avoid unnecessary complications later in future.

Honestly, 90% of the insurance policy holder know nothing about deductible. They feel the insurance company would shoulder all the responsibilities. It is hell no! The fact is that the insurance company do not take all the risk, they take larger percentage art of the risk while you take the remaining risk as agreed on the memorandum of understanding. That's the bitter truth about insurance policies.