Deductible
/dih-DUK-tuh-bul/
The amount you pay out-of-pocket before insurance kicks in.
Definition
A deductible is the amount you must pay toward a covered loss before your insurance company pays. Higher deductibles typically result in lower premiums, while lower deductibles mean higher premiums. Deductibles can be a fixed dollar amount (like $500) or a percentage of the claim value.
Example
With a $1,000 deductible, if your car repair costs $5,000, you pay $1,000 and insurance covers $4,000.
More General Terms Terms
The amount you pay for your insurance policy.
The contract between you and your insurance company.
A request for payment under your insurance policy.
The protection provided by your insurance policy.
The maximum amount an insurer will pay for a covered loss.
Something your insurance policy specifically does not cover.
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