In what way does a deductible an insurance company?

it adds to the company’s pool of funds.
it increases consumers' insurance premiums.
it lowers the payout the company has to make.
it reduces consumers' co-payments.

It lowers the payout the company has to make.

Explanation:

An insurance deductible is the amount of money a person needs to pay before the insurance company pays the remaining amount of the claim. A deductible is part of the cost of an insurance, and lowers the payout the company has to make because it is the part the person pays in case the insurance is needed. The amount of an insurance deductible usually depends on the terms of the insurance, it can be stated in numbers or percentages and the higher you pay for an insurance the lower the deductible will be.

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