What happens if an insured does not meet their deductible?

When an insured does not meet their deductible, the correct action involves deducting the deductible amount from the total claim payment that they will receive. The deductible is a predetermined amount specified in the insurance policy that the insured must pay out-of-pocket before the insurance company steps in to cover the remaining costs of a claim. For instance, if an insured has a $1,000 deductible and they incur a covered loss of $5,000, the insurance company will pay $4,000 after the deductible is applied.

This approach reflects the principle of shared financial responsibility between the insured and the insurer, encouraging policyholders to manage smaller claims while ensuring that the insurer covers significant losses. Meeting the deductible is a standard procedure in claims processing that upholds the terms of the insurance agreement.