What is a deductible and how does it affect you?

When reading a contract, you may come across the term deductible and be unsure what it means. This is an important concept that directly affects your wallet.

The deductible is the cost you bear before insurance starts paying. For example, with a small deductible, losses below that amount are on you.

Plans with a high deductible usually have a lower premium, but you bear more in small incidents. Conversely, a low deductible means a higher premium.

Weigh the deductible against your finances and the trip's risk level. There is no right choice for everyone, only the one that fits you.