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 to Ask When Getting an Insurance Quote

What to Ask When Getting an Insurance Quote

Obtaining an insurance quote is something that everyone will likely have to do. But do you know what to ask for yours?

Life Insurance Myths: Debunked

Life Insurance Myths: Debunked

Whether you have life insurance through your work or are retired it pays to know the truth about life insurance coverage.

The Right Time to Buy an Annuity

The Right Time to Buy an Annuity

Learn how timing can influence your decision about if and when to buy.