Meaning
A deductible is the initial amount you pay for an insurance claim before your insurer contributes.Definition
It’s the out-of-pocket sum you are responsible for covering from an insured event before your policy pays out.How It Works
You pay the deductible first. Your insurance company then covers the remaining eligible costs up to your policy limits.Impact on Premiums
A higher deductible typically means lower insurance premiums, while a lower deductible generally results in higher premiums.Author
