A deductible is used to?

A deductible is an integral feature of insurance policies, serving multiple purposes. Primarily, it is designed to eliminate small claims, which enhances the efficiency of the claims process for both the insurer and the insured. By requiring the insured to bear a portion of the loss before the insurance coverage kicks in, a deductible discourages filing claims for minor damages or losses. This approach helps keep overall insurance costs down for policyholders, as it reduces the insurer's administrative burden and the frequency of claims that typically come with lower financial impact.

Additionally, deductibles can foster a responsible approach to risk management, encouraging policyholders to only seek claims for significant losses rather than trivial issues. The use of deductibles aligns the interests of both the insurer and the insured, promoting prudent handling of claims and ensuring the policy remains economically viable.

In contrast, other options such as preventing over-insurance, catastrophic losses, or ignoring morale hazards do not directly relate to the primary function of a deductible in this context. While they may reflect considerations in insurance design, they do not encapsulate the specific purpose and functionality of deductibles in typical property insurance policies.