What's a deductible plan?

Question

Just curious...

Answer 1

A deductible plan is either a health insurance or auto insurance policy that requires the policy owner to pay the first X amount of dollars, before the policy pays out.  In the olden days (20 years or so ago) deductibles of $100 to $150 per year were common for health insurance, now $5000 isn't that uncommon.  Auto deductibles are usually much lower $100 to $500 per incident.