What is a Deductible?
When it comes to auto insurance coverage, a deductible will typically fall somewhere between $250 and $1,000. This indicates that you must have sustained at least the specified minimum amount of damage in order for your insurance policy to kick in and pay for anything. If you have a higher deductible, your monthly insurance premiums will, in most cases, be lower than if they were lower.
Types of Deductibles
The deductibles that apply to your insurance policy will differ from one policy to the next. Depending on the nature of the claim, you might be responsible for paying a different deductible.
For instance, the amount of the deductible that applies to the personal belongings in your home may be distinct from the amount that applies to the structure of your home in the homeowners’ insurance policy that you have. Dog bites and slip and fall accidents on your property are typically covered by homeowner’s insurance policies; however, each of these types of incidents is subject to its own separate deductible.
Most policies for automobile collisions include a deductible that is calculated on a per-incident basis. On the other hand, when it comes to health insurance, the deductible will typically cover the entirety of the calendar year.
For instance, if you have a deductible of $500, this means that your annual out-of-pocket medical costs must equal or exceed this amount before your health insurance company pays anything. In addition, your health insurance may pay for certain services, such as visits to your primary care physician, that do not count toward the fulfillment of your deductible.
What is the Difference Between Deductibles, Copays, and Co-Insurance?
If you take a close look at your insurance policies, particularly the one that covers your health care, you might notice that there are terms like “copay” and “co-insurance.” What exactly does each of these terms mean?
Co-Insurance refers to the portion of the overall cost that is responsible by you. Typically, it will be expressed as a percentage. It frequently applies to distinct costs associated with your healthcare, such as the price of your prescription medications.
When you get a certain service, you will be required to pay a predetermined sum known as a Copay.
It’s possible that the deductible on your health insurance policy is $500, that your copay is $25, and that your co-insurance for prescriptions is 20% of the total cost. This indicates that you will be responsible for the initial payment of $25 out of pocket when you go in for your routine checkup. If you are required to obtain any prescriptions as a result of that visit, you will be responsible for paying 20% of the cost that the insurance company incurs for that item at the pharmacy. Because visits to the doctor for routine care are covered by your health insurance, it is highly likely that you won’t be responsible for meeting your deductible at that point.
Our experienced team of attorneys can help you navigate this confusing world of insurance after you’ve been involved in an accident that wasn’t your fault.
Contact us to schedule a free consultation if you have questions regarding your personal injury accident.
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