Question

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

Answer 1

Answer:

C. Straight deductible

Explanation:

Straight deductibles are deductibles that specifies the amount (either in percentages or dollars terms) of a loss that one is expected to pay for each loss before the insurance company pays for the remaining cost. It is the deductible that is attached to each loss and it is subtracted before any loss payments is made. In this situation, the sum of $500 that Jenny must pay of any physical damage loss to her car is what we refer to as a straight deductible. These types of deductibles are used in the most personal lines of insurance like property, medical and so on.