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

Did You Know This Fact About Basement Flooding?

Did You Know This Fact About Basement Flooding?

A simple precaution can help prevent basement flooding.

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 Case of the Crooked Credit Report

The Case of the Crooked Credit Report

Solve a mystery while learning how important your credit report is with this story-driven interactive.