If you have a $500 deductible and get into a $600 accident, how much will you pay out of pocket?

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Multiple Choice

If you have a $500 deductible and get into a $600 accident, how much will you pay out of pocket?

Explanation:
When you have a deductible, it is the amount you are required to pay out of pocket before your insurance coverage kicks in. In this scenario, the deductible is $500, and the cost of the accident is $600. Since the cost of the accident exceeds your deductible, you will first pay the deductible amount of $500. After that, the insurance will typically cover the remainder of the accident costs, but since the total cost is only $600 and you’ve already paid your deductible, you'll pay the entire deductible amount. This means that you will pay $500 out of pocket for the accident. Thus, the correct answer is that you will pay $500.

When you have a deductible, it is the amount you are required to pay out of pocket before your insurance coverage kicks in. In this scenario, the deductible is $500, and the cost of the accident is $600.

Since the cost of the accident exceeds your deductible, you will first pay the deductible amount of $500. After that, the insurance will typically cover the remainder of the accident costs, but since the total cost is only $600 and you’ve already paid your deductible, you'll pay the entire deductible amount. This means that you will pay $500 out of pocket for the accident.

Thus, the correct answer is that you will pay $500.

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