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What does deductible reimbursement mean in layman’s terms?

Insurance brokers in Edmonton use specialized terms to describe the products they sell, the coverage they offer, and the insurance deductibles you pay. It can be hard to make sense of it all. Insurance deductibles are one of the most misunderstood aspects of insurance so we’re breaking it down in simple terms below.

Deductible Reimbursement in Edmonton

What is an insurance deductible?

Simply put, an insurance deductible is the predetermined amount of money that you’re responsible for paying if you file an insurance claim.

How do insurance deductibles work?

The insurance deductible, the amount you have to pay, is deducted from the total amount of your insurance claim, and your insurance company pays the rest.  Every insurance claim comes with its own deductible. So if you have two different insurance claims, that means you’ll have to pay two different deductibles.

Car insurance deductibles

You’ll have to choose the deductible amount for basic coverage. Additionally, you’ll have to choose a deductible for collision coverage, which covers the damage resulting from an accident, and comprehensive coverage, which covers damage to your vehicle while it is parked. 

Home insurance deductibles

With most home insurance policies in Edmonton, you’ll need to pay a deductible for a general policy, which covers basic damage and loss to your property or personal belongings. You can also choose your deductibles for a variety of other situations including:

  • Earthquakes
  • Flooding
  • Sewer backups
  • Storms

Medical and health insurance deductibles

If you have private health insurance to cover your medical expenses, you’ll likely have to pay deductibles for prescription medications as well as for annual coverage.

Business insurance deductibles

Just like your home, car, and health insurance deductibles, business insurance deductibles cover your insurance claim over and above a certain amount. Because each business in Edmonton has different needs, commercial insurance plans are highly customized.

Deductible reimbursement

In general, the lower your deductible, the higher your rates, and vice versa. You’re stuck between a rock and a hard place unless you choose a policy that offers deductible reimbursement. With Drayden Insurance you can enjoy lower rates and a higher deductible because we don’t just insure you, we insure your deductible too. That means we’ll reimburse you for the cost of your deductible so you’ll pay less if you ever have to file a claim.

If you’re looking for a home, auto, business, health or life insurance policy at an affordable price, speak to one of the friendly and professional insurance brokers from Drayden Insurance. Our insurance brokerage firm has been keeping Edmonton covered since 1965. Contact us today to learn more or to request a quote.

 

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