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

Who Does Survivorship Life Insurance Benefit?

Who Does Survivorship Life Insurance Benefit?

For married couples, weighing life insurance pros and cons later in life is key to choosing what fits your needs.

Prescription Drug Benefits Under Medicare (Part D)

Prescription Drug Benefits Under Medicare (Part D)

Do you need to enroll in Medicare Part D? Read this article to learn more about whether you need this coverage

The Latte Lie and Other Myths

The Latte Lie and Other Myths

Check out this video to begin separating fact from fiction.