Here’s everything you need to know about how deductibles work.
Basically, deductibles are the amount you pay before insurance kicks in. There are different types, which can vary depending on the type of insurance you have. The two major types are property and casualty insurance deductibles and health insurance deductibles.
Property and casualty insurance refers to home, auto, and business insurance (or really anything that involves property). This type of deductible is paid per incident. Let’s say your deductible is $500, and the incident costs $70 to fix. You’ll be paying that full $70 out of pocket. However, if the incident costs $700 to fix, and your deductible is still $500, that means you’ll only have to pay that first $500—the extra $200 is covered by the insurance company.
Health insurance deductibles, on the other hand, are paid per year, not per incident. For example, if you have a $2,500 insurance deductible, then you’ll be paying your health costs until you reach $2,500. These costs could include emergency room visits, health check-ups, and other things covered by your health insurance. Once you reach that $2,500 in the course of a year, the coinsurance kicks in and the insurance company starts helping you pay for your health needs. The only exception to this deductible is the co-pays.
If you have questions about deductibles, or anything related to insurance, please feel free to reach out via phone or email. We’d love to help you with your insurance needs!