What is an Insurance Deductible? – GEICO

Insurance is all about protecting your assets
from risk, so you don’t get stuck paying through the nose after an accident. But, before insurance kicks in to save
your nose [honking], your deductible is the portion you pay out of pocket. Let’s break it down. Say your deductible is $500 and your repair bill is $2,500. You only pay your deductible amount, $500
and the insurance pays the remaining $2,000. When one goes up, the other generally goes down. The appeal of a lower monthly premium comes
with the price of a higher deductible, which could ding you after an accident. So, set your deductible at an amount you are
willing and able to pay if the time comes. [whistling]


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