Morse Insurance Blog

One way to save money on your MA insurance could be to increase your deductible, but choosing whether to increase your deductible and how much to increase it by should be contingent on a number of factors. Here is an explanation of how deductibles work so you can make a more informed decision when it’s time to update your insurance policies.

A deductible is the amount of money you need to pay out of your own pocket for damage before the insurance company will contribute. Where you have damage from a car accident that costs $1000 and a $250 deductible on your insurance policy, you can expect to pay the $250 to repair the damage with the insurance company covering the remaining $750.

When it comes to health insurance, the deductible can be a set annual amount. With auto and home insurance, your deductible is paid each time you make a claim.

With property insurance, there is a deductible on your standard policy and there can also be separate deductibles for natural disasters such as hurricanes or earthquakes, especially in a state like MA which is prone to windstorms. Sometimes whether or not you pay a deductible comes depends on the reason for the damage. MA insurance policyholders were able to avoid paying hurricane deductibles after hurricane Irene struck because it was classified as a tropical storm rather than a hurricane when it hit MA.