Deductibles are a vital component of any insurance policy, but they can be confusing. Simply put, the higher your deductible, the lower your insurance premium. This means you are assuming more of the risk yourself and therefore the insurance company can sell you the policy for less. You should choose the amount of coverage that best suits you by deciding how much you can afford to pay out of pocket in the event of a loss.
Watch our video to learn how deductibles work and what to consider when picking one for your policy.