Which of the following is true regarding "deductibles"?

Deductibles are a fundamental aspect of insurance policies, serving to share the risk between insurers and insured parties. When a deductible is in place, it represents the portion of a claim that the policyholder must pay out-of-pocket before the insurer contributes to the remaining costs.

By selecting deductibles, policyholders essentially agree to bear some of the risks associated with a claim. This not only encourages responsible behavior in managing risk but also helps to lower insurance premiums, making coverage more affordable. When a claim occurs, the insurer will only pay for the expenses exceeding the deductible amount. Therefore, when a deductible applies, it reduces the total sum the insurer is liable to pay, thus making the option regarding deductibles accurate in this context.