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

Please Leave Home Without It

Please Leave Home Without It

Concerns over identity theft continue to grow, especially with data breaches at major companies and financial institutions.

How Your Credit May Affect Your Life Insurance Premiums

How Your Credit May Affect Your Life Insurance Premiums

This article is perfect for helping you explore the surprising connection between your credit score and life insurance costs.

Real Talk About Insuring Your Kid’s First Car

Real Talk About Insuring Your Kid’s First Car

Learn real-life realities and strategies for insuring your kid’s first car without breaking the bank.