In an insurance policy, the deductible is the amount paid out of pocket by the policyholder before an insurance provider will pay any expenses. The main objective is to reduce loss costs by excluding payments for small claims right at front. In general usage, the term deductible may describe one of several types of clauses that insurance companies use to outline the restrictions coverage that can carry significant events with high costs. The insurance firm expects to pay out slightly smaller amounts much less frequently, incurring much higher savings. As a result, insurance premiums are typically cheaper when they involve higher deductibles. For example, health insurance companies offer plans with high premiums and low deductibles or plans with low premiums and high deductibles. The deductible does each of these EXCEPT
