What role does a deductible play in an insurance claim?

A deductible plays a crucial role in an insurance claim as it represents the amount that the insured must pay out of pocket before the insurance coverage kicks in. When a claim is made, the insurer will subtract the deductible from the total amount of the claim. For example, if the insured has a $500 deductible and files a claim for $2,000 worth of damages, the insurer would payout $1,500. This mechanism effectively lowers the risk for the insurer and encourages policyholders to be mindful of small claims, as they will assume some of the initial costs.

The concept of the deductible also serves as a financial incentive for policyholders to manage their risk and avoid making trivial claims, as they will be responsible for covering the deductible amount. Thus, option B accurately captures the essence of how a deductible functions in the context of an insurance claim.