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What is Deductible?
A deductible is the amount you pay out of pocket on a covered claim before your insurance starts paying. Higher deductibles usually mean lower monthly premiums, and vice versa.
Examples
- A $1,000 auto deductible means on a $4,000 repair, you pay $1,000 and the insurer pays $3,000.
- A 2% named-storm deductible on a $400,000 home means $8,000 out of pocket after a hurricane.
- Health plans often reset the deductible each calendar year.
Why this matters
ReadMyPolicy flags policies with unusually high or percentage-based deductibles that can surprise you at claim time — including separate wind, hail, and hurricane deductibles buried in the fine print.
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