What does deductible mean in an insurance policy? This is the amount of a claim you are responsible for, before the insurance company starts paying its share of the costs.
In auto insurance, you can choose a plan with a deductible of $ 1,000. This would mean that if you have a collision where the damage repair would cost $ 5,000, the insurance company would pay $ 4,000 while you have to take the rest.
If you had a minor accident with a scratch that would cost $ 500 to repair, the insurance company would have nothing to pay. You should pay the repair yourself.
In health insurance, the deductible is one of three methods that the police can use to share costs. (The others are copay and co-insurance)
Health care costs add up over time rather than a single incident, so you generally find the deductible listed as a "deductible calendar year" (or CYD). When defined this way, it means that your bills start from $ 0 on January 1 and accumulate until the end of this year.
It would be unfortunate to develop a major health problem and to visit the hospital on New Year's Eve. If you have not yet reached your franchise for the previous year, you may end up with two franchises to meet. One for services before midnight, and another for costs in the new calendar year.
You can find a policy that starts counting the deductible from the start date of your coverage and which accumulates during the year of the police instead of the calendar year. rare.
Also rare is a plan that will allow you to roll on your franchise from the end of the previous year to help in case you will experience the scenario of New Year's Eve.
Sometimes you find an article in a state of political health where the definition of the franchise is "by admission" or "by occurrence". The deductible by admission would mean a new deductible applies each time you are admitted to the hospital, while "per event" would likely apply to each visit to the emergency room.
Usually, the health insurance policies that offer visits
The higher your deductible, the lower the risk to the insurance company and the less you have to pay premiums for coverage. On the other hand, lower deductibles mean higher premiums for you.
So, what is the best, a low or high deductible? If the annual savings is greater than the difference between the franchises, the highest deductible is the best.