What is one of the purposes of implementing a deductible in an insurance policy?

Implementing a deductible in an insurance policy serves to motivate the insured to protect their property. When policyholders have to pay a certain amount out-of-pocket before their insurance coverage kicks in, they are more likely to take steps to prevent damages and losses. This can include being more vigilant about maintaining their property, using security systems, or being cautious in high-risk situations. As a result, deductibles not only help insurance companies manage risk but also encourage responsible behavior among policyholders, ultimately aiming to reduce the frequency of claims and promote proactive risk management.