An insurance deductible is the amount you’re responsible for paying out of pocket before your insurance coverage kicks in.
For example, let’s say you have a $500 deductible and you get into an accident that causes $2,000 in damage. In most cases, you’ll need to pay the first $500 (the deductible) and your insurance will cover the remaining $1,500. There are some instances when a deductible will not apply – this will be decided by the insurance company during the claim process.
While choosing a higher deductible can lower your monthly insurance premiums, it also means you’ll have to pay more out of pocket if you have an accident. It’s important to find the right balance for your budget and needs, and that’s where Cheep Insurance can help! Give us a call or email us at support@cheepinsurance.ca to discuss the options that will be best for you.