Car insurance deductibles
When it comes to car insurance and any kind of insurance (health, life, home, etc) for that matter, a deductible is the amount of money that you (the insured party) has to pay before your insurance company policy kicks in and they begin to pay their share.
Car insurance companies have deductibles featured in their policies so that they will avoid paying out benefits on every small claim that happens. Not only does this save them money, but they also don’t have the paperwork or hassle dealing with 5,000 cars a day getting dented by a basketball, paint getting scratched, a tail light going out, etc. Most insurance company have policies that include a $500 deductible — that means that any repairs under $500, you pay in their entirety.
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