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Question 8 of 17 in How Rates Are Determined |
What is a deductible? |
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The deductible is the amount you must pay toward a claim before your insurance begins to pay. For example, if you have a $500 claim and your policy has a $100 deductible, you will pay $100 and your insurance will pay $400. Selecting higher deductibles is one way to reduce your premiums. Of course, you must decide whether the monthly savings are worth the risk of paying more in the event of an accident. |
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