Olive Cover
AboutFree Coverage Review

General

What is a deductible and how does it affect my premium?

A deductible is the amount you pay out of pocket before insurance pays on a covered loss. A $2,500 deductible means you absorb the first $2,500 -- the carrier pays the rest. Higher deductibles lower premiums because you are taking on more risk. The right deductible depends on your cash reserves and how much premium you save by raising it. For homeowners, many carriers in high-risk areas now use percentage deductibles for wind and hail that can be substantially higher than a fixed dollar amount.

Have a question we did not answer?

We respond within 1 business day. No obligation.

Free Coverage Review