Insurance

What is a Deductible?

Deductible

[dih-duhk-tuh-buh l]

noun

1.

A Deductible is the amount of money a policyholder must pay out of pocket before any insurance payments are made. For example, if repairs to a personal vehicle cost $1,000, but the Deductible on that Policy is $500, the policyholder must pay $500 toward the repairs before the insurance company covers the other $500.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Password Protection Strategies

Password Protection Strategies

Simple steps may help you foil hackers and protect your privacy.

Stay Safe with a B.O.P. At Your Back

Stay Safe with a B.O.P. At Your Back

Learn about the advantages of Business Owner Policies with this highly educational and fun animated video.

Car Insurance: Understanding Your Coverage Options

Car Insurance: Understanding Your Coverage Options

Here, we discuss the basics of car insurance coverage, including what’s required by law, what coverage you may want to consider, and the importance of understanding deductibles.