Question

In what way does a deductible help an insurance company

Answer 1

Answer:

It lowersthe payout the company has to make.

Explanation:

A deductible is your up-front contribution to a claim that is factored into what insurance will pay out. When you file an insurance claim, your insurance company pays for most of the cost. But before they contribute, your deductible is subtracted from the payout amount. Most insurance policies, including home and auto, require a deductible.