The dollar limit you have to pay for the year before your insurance covers the rest includes payments like deductibles, coinsurance, and copayments.
The majority of policies come with an out-of-pocket limit, which is different from your insurance deductible.
The amount you have to pay before your insurance coverage kicks in contributes to your out-of-pocket maximum.
The maximum amount you should pay for a specific time is your out-of-pocket expenses.
You would only have to pay up to a certain amount before your insurance would cover the rest if your policy had a limit on out-of-pocket expenses for a year.
Let’s say your maximum out-of-pocket expense is $1,500. The light post took $500 of that from your yearly obligation.
If you had a bad year on the road and two other people hit your car in different accidents, you would have to pay an additional $1,000 in deductibles.
