What is true in general about higher deductible amounts?

Question

(1 point)
Responses

Higher deductible amounts are taxable.

Higher deductible amounts are taxable.

Higher deductible amounts result in less money.

Higher deductible amounts result in less money.

The insurance is more greatly needed.

The insurance is more greatly needed.

The premiums are lower.

The premiums are lower.

Answer 1

In general, the statement that is true about higher deductible amounts is:

The premiums are lower.

When you choose a higher deductible for your insurance policy, the insurer typically lowers the premium because you are assuming more of the financial risk in the event of a claim. Thus, you pay less in terms of monthly or annual premiums.