In insurance, what is a deductible? -

Just looking for a simple definition. 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. 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. 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. Deductible means Assured Participation that in every claim partial or total loss there should be a deductible. 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) What you pay out of pocket, before the insurance kicks in. it's what u pay out of your pocket in general the higher the deductible the lower the monthly payment 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