What does a higher deductible generally imply about an insurance plan?

A higher deductible in an insurance plan typically indicates that the policyholder will pay more out-of-pocket expenses before the insurance coverage kicks in. Consequently, insurance plans with higher deductibles often have lower premiums. This means that policyholders can save money on their monthly or annual insurance payments, which makes these plans generally less expensive.

When considering the relationship between deductibles and premiums, many individuals choose higher deductibles to reduce their overall insurance costs, especially if they believe they may not need to file claims often. Therefore, the correct answer highlights the cost-effectiveness associated with higher deductibles and their impact on the monthly or yearly premiums charged by the insurance provider.