The deductible is what you pay out-of-pocket on an insurance claim before the insurer pays the rest. After the storm, we paid our $1,000 deductible, and then insurance covered the home repairs.
Pro Tip 2/3
Lower Premiums
Choosing a higher deductible often means you'll pay lower monthly premiums for insurance. To save on monthly payments, we opted for a plan with a higher deductible of $1,000.
Pro Tip 3/3
Not Always Applied
Not all insurance services need the deductible paid first; some might be covered with co-pays or fully. My annual physical didn't require paying the deductible, as it's fully covered by my insurance.