Insurance Policy Deductibles: A Primer

Insurance Policy Deductibles: A Primer


When you purchase an insurance policy, the details can be confusing and the terminology is often difficult to understand. One of the most common questions people have is about deductibles. What are they? How do they work? Is it worth choosing a higher deductible for your policy? These are all valid questions, and understanding how insurance policy deductibles work can help you make more informed decisions when purchasing a policy.

What is an Insurance Deductible?

An insurance deductible is the amount of money that must be paid out of pocket before an insurance company will cover any remaining costs incurred due to a claim. For example, if you have a car accident that results in $3,000 worth of damage and your car insurance has a $500 deductible, then you would need to pay $500 out of pocket first before your insurer will cover the remaining $2,500. The higher the deductible amount, the lower your monthly premiums will be; conversely, if you choose a lower deductible amount, your premiums will be higher but so too will your coverage. To determine which option works best for you and your budget, it's important to weigh both sides carefully.


How Do I File a Claim with My Insurance Company?

Once you have chosen an appropriate deductible for your policy, filing a claim with your insurance company is relatively simple. The first step is to contact your insurer as soon as possible after an incident occurs—even if it may not seem like much has happened or that there won't be enough damage to warrant filing a claim. Once you contact them, they'll usually assign someone (often called a public claims adjuster) who will review the situation and assess any potential damages or losses incurred. After they've assessed the situation and determined that it meets their criteria for filing a claim, they'll give you instructions on how to proceed with submitting any required paperwork or evidence necessary for processing the claim quickly and efficiently.


Insurance policies can be tricky to navigate because there are so many terms and variables involved in determining what kind of coverage best fits your needs. Understanding just one part—like deductibles—can go a long way towards helping you feel informed when making decisions about what type of policy best suits you and your family’s needs. If you ever have any questions about how deductibles work or want further guidance on filing claims with your insurer, consider contacting a public claims adjuster in central Florida who can help answer all of your questions!

Ultra has over 39 years experience handling property damage insurance claims all working together professionally to provide our clients with the best service available from start to finish. Contact us and let us help you ensure your Maximum Recovery today.

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