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What is a Deductible and how does it Work?

2/4/2015

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MA car and home insurance deductible
 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.



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