A smaller deductible typically leads to which of the following regarding insurance plans?

A smaller deductible generally leads to more costly insurance. When an insurance policy has a lower deductible, it means that the policyholder will pay less out-of-pocket before the insurance kicks in for claims. As a result, insurance companies often adjust premiums to reflect the lower financial risk for the insured, leading to higher premium costs.

In essence, when you opt for a lower deductible, the likelihood of the insurance company covering a claim increases, which results in the insurer charging a higher premium to account for this risk. Consequently, policyholders should carefully consider their deductible options in relation to their overall budget and potential claim frequency when selecting an insurance plan.