What is the definition of deductibles?

Question

What is the definition of deductibles?

Answer 1

the deductible by definition basically means the amount you agree to self insure yourself for.  You are basically insuring yourself for that amount and will go to the insurance company for anything over this

Answer 2

It is an amount that you pay up front before the insurance starts covering it's share.

Answer 3

With Auto insurance the deductible is the amount you must pay toward a claim before your insurance begins to pay. For example, if you have a $500 claim and your policy has a $100 deductible, you will pay $100 and your insurance will pay $400. Selecting higher deductibles is one way to reduce your premiums. Of course, you must decide whether the monthly savings are worth the risk of paying more in the event of an accident.

With Health insurance the definition is similar just a different type of coverage. It's the amount the insured is required to pay before the insurer begins paying benefits. For example, if the insured has bills amounting to $400 and the plan has a $100 deductible amount, the insured is responsible for paying the first $100 and the insurer will begin paying after that. Again like auto insurance, if you chose the health care plan with the higher out of pocket deductible, your premium is usually lower.

Hope this helps. ~J~

Answer 4

Deductibles for insurance really depends on the insurance itself.  Most people believe that it is money that you have to send to the insurance itself.  But that can be rather pricey.  

I went to an insurance understanding conference, and was told that a deductible depends on how many people are on the insurance itself, another determining factor is what coverage you have (i.e. 70/30,80/20,90/10).  The lower the coverage with more people usually carries a higher deductible, just as the opposite for higher coverage.  For an example of a deductible would be if you insurance is 70 percent there responsibility, and 30 percent your responsibility, with a 1500 dollar per person deductible this would mean that before they cover the 70 percent you would have to have a large bill higher than your deductible in this case that would be 1500 dollars.  Usually they pay only 50/50 excluding major bills in which before covering then you would have to pay that 1500 deductible for that specific person. Usually this would be a yearly basis. Alot of times though depending on the insurance policy small things are usually covered through the co payments for your part then what ever they dont cover they will send you bill in the mail.