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

What is a Term?

What is a Term?

Do you know what a Term is?

If a Pipe Breaks

If a Pipe Breaks

Learn what to do when a pipe bursts with this helpful video flooded with smart tips.

Should You Sell Your Life Insurance Policy?

Should You Sell Your Life Insurance Policy?

Here’s what you need to know if you’re considering selling your life insurance policy.