Question

Manny has car insurance and was in an accident with a bill totaling $11,500. The insurance company says he needs to pay the first $1000. What does the $1000 represent?

Answer 1

Answer:

A deductible

Explanation:

In insurance a deductible is the amount that a victim of an accident will have to.paynoit of his own pocket before the insurance pays for the rest.

When setting up an insurance the customer is allowed to set his deductible.

Lower deductibles attracts higher premium payments, while higher deductibles have lower premium payments.

In the scenario where Manny was in an accident with a bill totaling $11,500 and the insurance company says he needs to pay the first $1000. The $1,000 is the deductible amount