If you have a $500 deductible on the collision coverage part of your auto policy, you pay the total amount of any loss that does not exceed $500.In addition, you pay $500 of every loss in excess of that amount.If you have a loss of $1,500, therefore, you pay $500 and the insurer pays $1,000.Identify this type of deductible.
A)Vanishing deductible
B)Franchise deductible
C)Waived deductible
D)Straight deductible
E)Disappearing deductible

Question

Quizplus · Accepted Answer

This is a description of a straight deductible, where the insured pays a fixed amount before the insurance coverage begins to pay. In this case, the insured pays the first $500 of any loss.

If You Have a $500 Deductible on the Collision Coverage