Insurance Terms Glossary: Definition of Deductible

Deductible

Insurance Terms Glossary

Deductible

de·duct·ible

\di-ˈdək-tə-bəl\

noun

This is the sum of money that must be paid in any loss before the insurer begins to pay out on the claim. The higher the deductible, the lower the insurance premium.

Peter’s repairs cost $2,000, but he first had to pay his $500 deductible before the insurance company stepped in to pay the rest.
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