Under the terms of Jenny's auto insurance policy,she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything.What type of deductible is included in Jenny's auto insurance policy?
A)calendar-year deductible
B)waiting period
C)straight deductible
D)aggregate deductible

Question

Quizplus · Accepted Answer

A straight deductible requires the policyholder to pay a fixed amount out-of-pocket before the insurance coverage begins to pay for any loss or damage. In this case, Jenny's policy requires her to pay the first $500 of any physical damage loss, which indicates a straight deductible. A calendar-year deductible is an annual deductible that resets each year, a waiting period is a set amount of time that must elapse before coverage begins, and an aggregate deductible is a type of deductible that aggregates all losses over a period. None of these options fit the description provided in the question.

Under the Terms of Jenny's Auto Insurance Policy,she Must Pay