Deductible

usgb/dɪˈdʌktəbl/
noun

The amount of money you have to pay before your insurance starts to cover costs.

My health insurance has a $500 deductible, which means I have to pay the first $500 before the company begins to cover expenses.
Visual representation of "deductible" - The amount of money you have to pay before your insurance starts to cover costs.

Often appears as...

  • pay the deductible
  • high deductible
Definition 1 of 2
Visual representation of "deductible"
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Insurance Cost

The deductible is what you pay out-of-pocket on an insurance claim before the insurer pays the rest.

Illustration for Insurance Cost
After the storm, we paid our $1,000 deductible, and then insurance covered the home repairs.
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Lower Premiums

Choosing a higher deductible often means you'll pay lower monthly premiums for insurance.

Illustration for Lower Premiums
To save on monthly payments, we opted for a plan with a higher deductible of $1,000.
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Not Always Applied

Not all insurance services need the deductible paid first; some might be covered with co-pays or fully.

Illustration for Not Always Applied
My annual physical didn't require paying the deductible, as it's fully covered by my insurance.
Visual representation of the word "Deductible"

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