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 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.

Bi-Weekly Payments

Bi-Weekly Payments

This calculator estimates the savings from paying a mortgage bi-weekly instead of monthly.

Protecting Yourself & Your Home From Hurricanes

Protecting Yourself & Your Home From Hurricanes

Hurricane season is here, and it's important to be prepared. Ensure that you and your family are ready if disaster strikes and keep your loved ones safe.