How Does the Deductible Work on Your Ohio Insurance Policy?

May 09, 2014

Don’t worry, this is a safe place, you can admit to such things here.

The deductible is simply the money you have to pay first.

It’s important to remember, you only have to pay this money if you have a claim.

A claim is when something happens that’s covered by your insurance policy. Like a surgery on a health insurance policy or if a hail storm damages your house or car.

That’s when you would have to come up with the

Here’s an Example

Let’s say you need to have an MRI scan done to take a look at your knee and you get a bill for $2,000 for the test.

If you have a $1,000 deductible, you pay for the first $1,000 of that bill before the health insurance company would start paying.

If you have zero percent coinsurance, you would only have to pay $1,000, if 80/20 or 70/30 coinsurance that’s when the insurance company would start splitting the bills.

You can read more about how coinsurance works here.

Auto and home insurance work a little different in the sense that they don’t have a coinsurance. You pay your deductible first then the policy starts picking up the check.

Don’t be afraid of higher deductibles, especially with health insurance. Your deductible shouldn’t be looked at like an achievable goal every year, instead you should treat it like a “if you really had to situation.”

Most of the time if you're buying a lower deductible costing you more money each month. If you're likely to come nowhere near that amount each year, then you’re throwing your money away to the insurance company.

I would much rather put that money back in your pocket than blindly give it to an insurance company.

Here’s a simple formula for wanting a higher deductible.

Watch the short video below for a more detailed explanation on how your deductible works on your insurance policy.

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If you would like some help with health insurance or want to make sure I'm a real human being, you can send me an email, give me a call at 440-964-8211 or talk face to face over the internet.

Giangola Insurance Agency, Inc.

1000 Lake Ave.
Ashtabula, OH 44004
Phone: 440-964-8211

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