Deductible

11 Nov Deductible

The amount of money you agree to pay out-of-pocket for a claim is called your deductible. The amount you choose often affects your insurance premium. A higher deductible usually means a lower insurance premium. In the case of a covered loss, you’ll only be required to pay your agreed out of pocket money (deductible), and the insurance company will cover the excess, up to the amount specified in your policy.

For example, if the total cost to repair your boat is $3,300 and you have a $500 deductible on your boat insurance policy, you’ll need to pay $500 of the $3,300.