What does a higher deductible generally result in for policyholders?

A higher deductible generally results in lower insurance premiums for policyholders. This is because when policyholders choose a higher deductible, they agree to pay a larger portion of any claims out of pocket before the insurance coverage kicks in. Insurers view this as a lower risk, since the policyholder is more invested in preventing losses and is less likely to file smaller claims. Consequently, the premiums for the policy are reduced to reflect this increased responsibility on the policyholder’s part.

Moreover, lower premiums due to a higher deductible can make insurance more affordable for those who feel confident they can cover larger expenses if an incident occurs, thus balancing their potential financial risk against the cost of their insurance policy.