In insurance, what is a deductible?

Question

Just looking for a simple definition.

Answer 1

The amount you have to pay out of pocket before the insurance company starts to pay their portion.

For example, if you have an Auto policy with a $500 deductible, and you have an accident that costs $1000, then when you file a claim, you pay the first $500 and the insurance company pays the rest.

Answer 2

The deductible is the amount of financial risk that you retain in the event of a loss. For instance, if you have a $1000 deductible and your claim is $10,000. You retain $1000 out of your pocket and the insurance will cover the remaining $9000 pursuming no other cost sharing arrangements.

The more risk you retain from the deductible will generally result in a lower premium amount.

Answer 3

The deductible is the amount of an insured loss that the insured agrees to pay for a claim.

For example, if you had an auto accident that damages your car, and the damage was $1,000. If you had a $250 deductible for physical damage, you would pay $250 and the auto isnruance company would pay the other $750.

I hope that helps! Bets of luck to you.

Answer 4

it's something you have to pay if your car is damaged over the amount of the deductible...say you got $2000 worth of damage and a $500 deductible then you would pay the $500 and the insurance companey would pay the rest

Answer 5

When you took out your policy - you agreed to pay for the first $500 worth of damage/bills if your insurance company would pay for the rest.

(if you have a 500 deductible)

Answer 6

Deductible means Assured Participation that in every claim partial or total loss there should be a deductible.

Answer 7

it's what u pay out of your pocket in general the higher the deductible the lower the monthly payment

Answer 8

What you pay out of pocket, before the insurance kicks in.