When it comes to affordable coverages, it’s important to look at costs beyond what may be presented by the monthly premium. According to Crop Insurance Solutions—a leading local provider of individual and commercial insurance in Dumas, Texas, one of the most important factors policyholders need to consider is that of the deductible.

The deductible is the amount you pay before your policy begins to cover a claim. For example, if your homeowners’ policy has a $1,000 deductible and you make a $10,000 claim, you’d have to pay the first $1,000 before the insurance company covers the remaining $9,000 costs.

Most policies allow you to set your deductible to a higher or lower amount, but Crop Insurance Solutions reminds consumers this decision can affect your monthly premium. A low-deductible plan, for instance, will mean having to pay out less in a time of need—but it can mean a substantially more expensive premium. In reverse, a high-deductible plan will lower your premiums, but require you to pay more money before your benefits are activated.

Determining whether or not you should get a high- or low-deductible plan isn’t always a clear-cut decision, as it can depend on your health, age, overall risk, budget, and coverages.

Health coverage can be arranged to have several deductible options. If you’re a healthy person with little health risks and a small monthly budget, choosing a medical plan with a high deductible may make the best sense for you. However, if your health coverage provides coverage for your entire family who requires regular medical care, a high annual deductible can lead you to pay more out-of-pocket—and possibly never meet the maximum limit before year-end.

It’s important to note deductibles don’t apply to every situation. For example, some health insurance plans will pay for a portion of your prescription costs before the deductible is met. Some forms of auto insurance also may not require you to pay the deductible to repair specific types of damage.

Since deductibles can be tricky, it’s best to work with a trusted insurance company to evaluate your policies, coverages, and deductibles. Covering everything from health to home, the agents at Crop Insurance Solutions can assess your budget and calculate your coverage needs to choose a deductible that works for your budget and lifestyle. To schedule a consultation or request an insurance quote for coverage in the Dumas, Texas, area, call a trusted agent today at (806) 935-6512.