One of the most common terms in the insurance industry is “deductible”, but what is it and how does it apply to your insurance policy?
If you read our previous blog on managing risk you may remember that the deductible on a policy is a form of retention for the policyholder. A deductible is the portion of a loss that you are responsible for covering before your insurance company will step in to cover the rest of the loss.
Most companies will offer the incentive of lower premiums in return for the insured carrying a larger deductible. This is always an option if you’re willing and able to cover smaller claims that may arise and would like to get a lower premium.
Do you have a question that you’d like to ask? Email us at email@example.com and we might use it in a future entry!
This article was written by Joshua Palmer
Josh is a licensed insurance agent with the Mayflower Wollam Insurance Group. He is a graduate of Mineral Ridge High School, Class of 2008, and attended the United States Air Force Academy, Class of 2012, where he earned a Bachelor of Science in Meteorology. Josh brings a unique background into the agency and focuses on a mixture of personal, commercial, farm and life insurance. His office is located in our Cortland location.