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?

Related Content

Disability Insurance: Who Should Have It?

There are generally 3 ways to obtain disability insurance. We're discussing these options in-depth, as well as whether or not you should consider purchasing your own policy.

6 Tips to Help You Prepare for Natural Disasters

Disaster can strike at any time. These six tips can ensure you’re prepared when it does.

If You're In An Accident

Learn the best steps to take after you’ve been in an automobile accident with this useful, step-by-step video.