What would be a primary reason Sam might choose to have a franchise deductible?

Choosing a franchise deductible often allows policyholders to benefit from lower insurance premiums. A franchise deductible is a unique structure where the insurance policy includes a specific threshold that, once exceeded, results in the insurer covering the loss fully, while losses below that threshold are not compensated. By selecting a franchise deductible, Sam might be opting for a higher deductible amount, which typically leads to reduced premiums because the insurer’s risk is lowered when policyholders share more of the potential loss.

This cost-saving approach is often appealing, especially for businesses or individuals who may not experience frequent small losses. It is important to note that the other options, such as higher payout amounts, more comprehensive coverage, and reduced claim filing frequency, do not directly correlate with the concept of having a franchise deductible. Instead, they might pertain to different aspects of insurance policies that do not specifically influence the primary reason for selecting a franchise deductible.