Who Determines Your Deductible Amount?

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Who Determines Your Deductible Amount? Setting your deductible amount is often a joint decision between you and your insurer. With some insurance types, the company will set a minimum deductible and then give you optional higher deductibles from which to choose. When you choose a higher deductible, your total premium will typically be lower. However, you will pay more out of pocket before your insurance coverage is activated. For example, with errors and omissions insurance, the minimum deductible might be $500. However, to save money, you might agree to select a $1,000, $2,000, $3,000, or up to a $10,000 deductible. The higher you go, the greater the risk you will assume personally and the less you will pay as premium for your policy. Deductible is determined by a couple of factors: 1)Type of Insurance; -Individual policies: For some types of insurance, like auto or homeowners insurance, the insurance company sets the base deductible for different levels of coverage. -Employer-sponsored plans: For health insurance provided through an employer, the deductible amount is typically determined by the employer's chosen plan and negotiated with the insurance company. 2)Negotiation: In some cases, especially for high-value items or specialized insurance, negotiation with the insurance company might be possible to influence the deductible amount. This typically involves individuals with valuable assets or businesses seeking custom coverage solutions. 3)Regulations: Some jurisdictions have regulations that set minimum or maximum deductibles for certain types of insurance. This can limit the range of deductible options available to both insurance companies and policyholders. It's always important to carefully review the details of any insurance policy you are considering, particularly the deductible amount and its impact on your premiums and coverage. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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