Insurance companies often require deductibles to:

Question

Quizplus · Accepted Answer

Insurance companies require deductibles to minimize moral hazard, which is the tendency for people to take greater risks when they are not personally responsible for the consequences. By requiring a deductible, individuals have some financial responsibility for their own health care costs, which can reduce unnecessary medical expenses and help control overall healthcare costs. This also helps to discourage individuals from submitting claims for minor healthcare expenses, which can result in higher premiums for everyone.

Insurance Companies Often Require Deductibles To