GLOSSARY · INSURANCE
Deductible
The part of a covered loss you pay yourself before an insurance policy starts paying. In health insurance it is usually a yearly amount; in home and auto insurance it usually applies to each claim. A higher deductible lowers the premium because you keep more of the small losses, which is a sound trade only when savings can cover it.
Also called: out-of-pocket before coverage, insurance deductible, annual deductible, raise my deductible, percentage deductible, hurricane deductible
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CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSHow Insurance Works and What It Is ForCHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSBuilding a Cash Safety Net Under Your InsuranceRELATED TERMS
SOURCES
- Deductible (glossary). HealthCare.gov, U.S. Centers for Medicare & Medicaid Services.
- Insurance. Consumer Financial Protection Bureau.