Your deductible (the amount you pay out-of-pocket before your insurance kicks in) and policy limits (the maximum payout your policy will cover) have a significant impact on your premiums and your coverage.
- Tip:
Balance premiums and deductibles—Higher deductibles can lower your premium, but ensure it’s an amount you can afford to pay out of pocket if you need to file a claim. Make sure your policy limits are sufficient to cover the total value of your home, car, or business.- For Health Insurance: Consider your health needs when choosing a deductible. A high deductible may save you money on premiums but could leave you with significant out-of-pocket costs if you need frequent medical care.
- For Auto Insurance: Ensure your coverage limits are adequate for potential liability risks. If you’re involved in a serious accident, insufficient coverage could leave you financially vulnerable.
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