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

The ABC’s of Auto Insurance

The ABC’s of Auto Insurance

What kind of auto insurance should you have? Do you know?

Did You Know This Fact About Night Safety?

Did You Know This Fact About Night Safety?

Follow this tip to increase your children's visibility at night.

Term vs. Permanent Life Insurance

Term vs. Permanent Life Insurance

When considering life insurance, it's important to understand your options.