Question

If you cause a car accident, which type of insurance will require you to pay the least out of pocket? AHigh deductible plan BLow deductible plan CEither A or B DNeither A nor B

Answer 1

A high deductible plan if that person blames you for it and said that it was on purpose

Answer 2

Option B i.e Low deductible plan is the correct answer.

Low deductible insurance plan means higher car insurance rate and lower out of pocket costs.

An example, if you met an accident and the cost of damage to your car is $ 4000 and your insurance deductible is $ 500. So you have to pay only $ 500 and the insurance will cover the rest $ 4500.

In another case, if your deductible is $ 3000, you have to pay $ 3000 and rest $ 200 will be covered by insurance.

So lower the deductible, the least money you have to pay and higher the deductible, more money you have to pay.