Zero Deductible Insurance: The Pros And Cons

Insurance that has no deductible sounds absolutelyvandalism and theft do not have a deductible.
wonderful since we are sometimes stuck in theThere are other types of insurance such as travel
"you must meet the deductible before..." trap. Thisinsurance, renter's insurance, and business
is true for health insurance, property insurance,insurance that may require deductibles, so
and car insurance. Luckily life insurance doesn'tapparently there's a reason for having a deductible
have a deductible to meet or beneficiaries wouldother than it being the amount of a claim that is
be in trouble. First of all, one must understandnot covered by the insurance company. It does
what the deductible means for the most commongive the insurance a bit of a financial edge so that
forms of insurance: - Health Insurance: Usually youthey can continue to produce low premiums with
are required to choose a deductible when signingreasonable deductibles. What about the insurance
up for health insurance. The higher the deductible,policies that don't have deductibles? No matter the
the lower your premiums. However, you mustkind of insurance you have, there are some
meet that deductible in the form of how muchavailable that do not require deductibles. This can
healthcare you have to pay for before yourbe beneficial in that coverage is provided without
health insurance provider will give you the fullhaving to meet that annoying deductible, but what
coverage of the policy. This can exist on anabout the quality of the coverage? Sometimes
individual and/or a family level. An example is anwith non-deductible insurance, the insured may
individual who has a $500 deductible and must payhave to eventually pay a deductible amount if
$500 toward their healthcare bills before the fullthere are too many claims on the policy. The
benefits of their policy kicks in. These deductiblesquality of the coverage may not be as good as a
can be hundreds or even thousands of dollars,policy with a deductible as far as the items in
depending on what the policy holder chooses. -small print go. There may be more restrictions in
Property Insurance: This comes in the form ofcoverage and stricter limitations as far as what is
homeowners insurance and insurance on variouscovered goes. What it comes down to is that
other pieces of property. If the property isinsurance with a deductible may provide you with
damaged in some way, there are stipulationsbetter coverage, lower premiums, and have less
within the insurance policy that says a certainunderlying clauses. Non-deductible insurance, on the
amount of money must be paid by the policyother hand, is cheaper in that you have no
holder before the insurance will do anythingdeductible and the premiums may be comparable
toward repairing or replacing the damagedto deductible insurance, but you may run into
property. Sometimes this doesn't work if thesituations where you are limited on what you can
property damaged is not worth the amount ofclaim and you may find that you will eventually
the deductible. - Car Insurance: Car insurance hashave to pay a deductible anyway, otherwise the
deductibles depending on the kind of damage thatinsurance company is only receiving money made
has occurred to the car. If there has been afrom premium payments to provide their clients
collision, then chances are there will be acoverage.
deductible that must be met before any repairsZero deductible insurance does not necessarily
are paid for by the insurance company. Sincesave you money. Premiums are often higher and
collisions result in thousands of dollars in damagethe coverage isn't as adequate. It's important to
to a vehicle, something such as a $250 or $500always get an insurance quote when shopping for
deductible will save money instead of having toinsurance.
pay for 100% of the repairs. Occurrences such as