What is meant by deductible?

Question

What is meant by deductible?

Answer 1

The amount you have to pay before the Insurance company will pay out there portion of the claim. now remember one thing dont get talked into insane high deductable , by increasing your deductable wont drop your premium much unless your a very few that it does. Keep it around $500 for collision and around $250 for Comprehensive.

Answer 2

If you have full coverage car insurance, and you have a $500 deductible, that means if you're in an accident, you'll have to pay $500 before the insurance company pays anything.  So if you had $2,000 damage to your car, the insurance company would pay $1,500 after you paid $500.

Generally, the higher your deductible is, the lower your monthly premiums will be.

Answer 3

The deductible is the amount of your settlement which the insurance company subtracts (deducts) from the settlement paid to you.  

In simple language, it is the amount of the loss you will have to pay.

Example:  Your $200,000 home burns to the ground.  Your policy has a $1000 deductible.  The insurance company will deduct $1000 from the $200,000 settlement and will pay you $199,000.  Your part of the loss is the deductible - in this case $1000.

Hope this helps.

Answer 4

The amount out of your pocket, before the insurance kicks in.

Answer 5

Amount that needs to be satisfied before the benefit take place. Any procedure that are given before satisfying the deductible will be the members responsibility and the provider will submit the claim and the the insurance will apply it to the deductible according to the benefit coverage.