What amount will an insured collect for damage amounting to $150 if they have a $200 deductible for Collision coverage?

In the context of insurance, particularly Collision coverage, a deductible represents the amount that the insured must pay out-of-pocket before the insurance coverage kicks in. In this scenario, the damage amounts to $150, and there is a $200 deductible in place.

When a claim is made for damage, the insurance payout is calculated by subtracting the deductible from the total amount of the loss. Here, since the deductible of $200 is greater than the total damage of $150, the insured will be responsible for the entire $150. As a result, since the claim amount does not exceed the deductible, the insured will not receive any payout from the insurance company. Therefore, the amount collected for the damage would be $0.

This situation highlights the importance of understanding how deductibles work in relation to the total damage amount when assessing potential insurance payouts.