Insurance Glossary

Deductible

The amount you pay out of pocket on a claim before insurance pays the rest.

Deductible

A deductible is the amount you agree to pay out of pocket when you file a claim. If your deductible is $500 and repairs cost $3,000, you pay $500 and your insurer pays $2,500.

Higher deductibles lower your premium — but only choose one you could afford to pay tomorrow.

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