How do deductibles work?

A deductible is the amount you pay out-of-pocket before insurance coverage applies.

Key points:

• Higher deductibles often lower premiums.

• Deductibles can be per incident or per year, depending on policy terms.

• Always review deductible amounts to ensure affordability in case of a claim.

Example: A fleet manager chooses a $500 deductible per vehicle. If a van has $2,000 in damage, the insurer pays $1,500 after the deductible.