Question

In auto insurance, a higher deductible means the customer _____. a. has a higher monthly bill, but pays less out of pocket in the event of an accident. b. has a lower monthly bill, but pays more out of pocket in the event of an accident. c. has a higher monthly bill and pays more out of pocket in the event of an accident. d. has a lower monthly bill and pays less out of pocket in the event of an accident. Please select the best answer from the choices provided A B C D

Answer 1

In auto insurance, a higher deductible means the customer b. has a lower monthly bill, but pays more out of pocket in the event of an accident.

Explanation:

Insurance is a scheme of protection from financial loss. The government or private organization takes responsibility of providing compensation for specific losses, illness and death of a person under the insurance scheme. Insurance can be taken for vehicles, goods, person and any wealthy products.

Higher deductible in insurance means the insurer pays greater amount for initial health care. The person with high-deductible plan is eligible for a Health Savings Account (HSA). The customer pays higher in the event of an accident in higher deductible plan.