when an insurance policy has a $2000 deductable what does that mean?

Answer 1

It means if you have a wreck (or need to file a claim for other reasons), you have to pay the 1st $2000, then the insurance picks up. If you get an estimate to repair your car and it's $5000, You pay $2000 and they will pay $3000.

Answer 2

It means you are responsible for $2000 before the insurance will pay the balance of the bill.

For auto insurance, this could be 2k per accident, meaning you could be responsible for paying the 2k repeatedly if you have multiple accidents...

For health insurance, usually it is a 2k deductible before the insurance company will pay their part...that could be 100% of the remainder of the bill, or it could kick into 80/20...depends on the structure of the insurance. There are some things that don't usually require you to meet the deductible....usually medications, MD visit co-pays, etc don't have a deductible before the insurance kicks in.

Also, if you're looking at a big bill from a hospital, check with their financial aid department....almost all major hospitals offer a range of discounts based on income and family size.

Good luck!

Answer 3

That means you have to pay for the first $2000 in damage to whatever is covered before the insurance kicks in. Typically the higher the deductable the lower the premiums and vice versa.

Answer 4

It means that whatever the damage or loss is, that the insured is responsible for paying the first 2,000 of the claim. The higher the deductible, the cheaper the policy is.

Answer 5

I am assuming this is on a personal or small business policy.

Just to expand a little on the last post. If you have a $2,000 deductible on your policy, you received a very large discount because of that - typically a 20-30% discount is applied. The discount is given because you will not need to bother the insurance company with small claims, only large ones.

Answer 6

It means, you pay the first $2000 before the insurance kicks in.

Answer 7

If you were to suffer a loss (auto, commercial, or home situation), the insurance company is going to pay the amount it takes to cover the loss minus your deductible.

Example:

Car crash causes $6,000 estimated damage to your vehicle.
$6,000 - $2,000 Ded = $4000 out on your auto from Insurance

With health insurance it is a bit different, you pay out the deductible first before your insurance kicks in to helping make adjustments and payments.

Answer 8

The insurance policy will not consider paying any benefits until you have paid $2,000 out of your own pocket.