How does a straight deductible operate?

A straight deductible operates by applying a specified amount that the insured must pay out of pocket for each separate loss before the insurance coverage kicks in. This means that for every claim made, the policyholder must satisfy the deductible amount first, after which the insurer will cover the remaining costs up to the policy limits.

For instance, if an individual has a straight deductible of $500 and suffers two separate incidents, they would need to pay $500 for each incident before insurance starts covering additional costs. This is fundamentally different from other deductible structures where the deductible could be applied to total losses, accumulated over time, or adjusted based on the claims history, which do not impact each individual loss in the same straightforward manner.