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

How Does an Umbrella Insurance Policy Work?

How Does an Umbrella Insurance Policy Work?

If you have a lot to lose, an Umbrella policy could be exactly what you need.

Did You Know This Fact About Unattended Cooking?

Did You Know This Fact About Unattended Cooking?

Do you know unattended cooking is a leading cause of fatal home fires?

What Deductible is Right for You?

What Deductible is Right for You?

Deductibles are tricky for some. Help make it simple with this article.