What Is Insurance Deductible

A deductible is a separate cost from your insurance rate.

What is insurance deductible. A deductible is a fixed amount to be paid by the insured individual before any insurance benefit is paid. Essentially, when you have a car accident and file a claim, your claim payment will be reduced by the amount of your deductible. Your deductible can range anywhere from $0 up to a few thousand dollars, with the average car insurance deductible being around $500.

For instance, if you have a $500 deductible and $3,000 in damage from a covered accident, your insurer would pay $2,500 to repair your car. A car insurance deductible is the amount of money you are required to pay when you file a claim for an insured loss. In a health insurance plan, your deductible is the amount of money you need to spend out of pocket before your health insurance starts covering your health care costs.

Homeowners insurance deductible is an important part of a home insurance policy. The subsequent claim payment that you receive from your insurance company is the total damage or loss amount minus your deductible. Laws vary by state, but your deductible might be a specific.

As mentioned, the health insurance deductible may vary from plan to plan. A deductible is an amount that must be paid for covered healthcare services before insurance begins paying. It's one of the most common car insurance questions and may be the easiest to answer:

After you pay your deductible, you usually pay only a copayment or coinsurance for covered services. The amount you pay for covered health care services before your insurance plan starts to pay. When a disaster strikes your home or you have a car accident, the amount of the deductible is subtracted, or “deducted,” from your claim payment.

A homeowners insurance deductible is the amount of money that you’re responsible for paying before your insurance company will pay you for an insured loss. Insurance will cover a portion of your costs and you will pay the rest, which is called coinsurance. A health insurance deductible is the amount of money you pay out of pocket for healthcare services covered under your insurance plan before your plan begins to pay benefits for eligible expenses.