A deductible refers to the amount you must pay out of pocket when filing a claim for an insured loss.
A deductible refers to the amount you must pay out of pocket when filing a claim for an insured loss. In the event of a disaster affecting your home or an accident involving your vehicle, this deductible is subtracted from the total amount your insurance company will pay toward your claim.
Typically, choosing a higher deductible can lead to lower premium payments for your insurance policy. A deductible may be defined as a specific dollar amount or as a percentage of the total coverage provided by your policy. The exact deductible amount is specified in your coverage terms and can be found on the declarations page of standard homeowners, condo owners, renters, and auto insurance policies.