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

Life Insurance for Young Adults

Life Insurance for Young Adults

Getting Life Insurance before 40 isn’t as uncommon as you think. Find out why this can be a super smart decision for just about anyone.

5 Costly Mistakes In Your Life Insurance Policy

5 Costly Mistakes In Your Life Insurance Policy

There are many considerations when purchasing family life insurance. Make sure your family understands these life insurance mistakes and how to avoid them.

Will It Pay to Buy Travel Insurance This Summer?

Will It Pay to Buy Travel Insurance This Summer?

While protection is never a bad thing, you want to make sure the value of the coverage outweighs the added cost.