Information AboutDeductible |
| CATEGORIES ABOUT DEDUCTIBLE | |
| insurance terms | |
| health economics | |
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In an Insurance policy, the deductible or '''excess''' is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policy holder. The deductible must be "met", that is, paid by the insured, before the benefits of the policy can apply. In a typical Automobile Insurance policy, a deductible will apply to claims arising from damage to or loss of the policy holder's own vehicle, whether this damage/loss is caused by Accidents for which the holder is responsible, Vandalism or Theft . Third-party Liability coverage generally has no deductible, since the third party will likely attempt to recover any loss, however small, for which the policy holder is liable. Most , and vice versa. The type of health insurance deductibles can also vary, as individual amounts and family amounts. Major medical insurance policies are known for often having a deductible which does not cover the cost of routine visits (e.g., to a doctor's office). For example, a person might have an auto insurance policy with a $500 deductible on collision coverage. If this person were in an accident that did $800 worth of damage to the car, then the insurance company would pay him or her $300. The insured is responsible for the first $500 of damage (the deductible), and the insurance company pays the balance. There are also deductible reimbursement programs that reimburse a deductible in the event of an auto, home, or health insurance claim. |
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