Scenario: I pay X amount of dollars per month for car insurance. I have all 4 tires stolen from my vehicle overnight. I submit a claim with my insurance company to repair any damages. I now pay a **hefty** X amount of dollars for the event that has occurred.
In: Other
deductible is you telling your insurance “hey, I can afford any problems less than $500, anything more than that, I need help”
so when your tires get stolen, you pay the first $500 (since you told the insurance company you could afford that) and the insurance company pays the rest.
if the tires cost less than $500, then you’re on the hook for the entire amount and the insurance pays nothing.
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