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

Test Your Life Insurance Knowledge

Test Your Life Insurance Knowledge

How much do you know about one of the most important tools you have to help protect your and your family’s financial future?

How Pre-Existing Conditions Affect Life Insurance

How Pre-Existing Conditions Affect Life Insurance

Have a pre-existing condition? Learn the facts before assuming life insurance coverage is costly or low quality.

The Best of Both Worlds

The Best of Both Worlds

Here are a few reasons we’ve chosen to be independent.