When you purchase a MA car insurance or MA homeowners insurance policy, you'll be given a choice of what deductible amount you want to carry. So.. what exactly is a deductible and how does it work? Let's break it down:
What is a car insurance deductible? The deductible is the amount that you will absorb to fix the damage to your car if you are in a collision that is YOUR fault. Having a deductible reduces your premium. The higher the deductible, the less your premium is. A standard MA car insurance deductible is $500 but often times people go with a $1,000 deductible to reduce their premium even more.
What is a homeowners insurance deductible? A MA homeowners insurance deductible again is the amount you will absorb in the event of damage to your home. A standard MA deductible is $500 or $1,000 but a higher deductible can be purchased. The higher the deductible, the less your premium.