In plain English
This is the part of a covered loss or expense that the insured person pays first. The insurer starts paying only after that amount has been paid under the policy.
In context
Here, “deductible” labels the amount the insured person must pay first toward a covered loss or expense before the insurer begins to pay under the policy.
- Situation
- Reading premium, deductible, excess, copay, limit, and out-of-pocket fields
- What it communicates
- labels a cost-sharing amount in the plan comparison table
Meaning limits
The term alone does not state how large that amount is or whether a particular loss or expense is covered under the policy.
Examples
“After the burst pipe, Nina paid the deductible first, and the insurer paid the rest of the covered repair bill.”
“Even on a covered claim, Paul still owed a deductible out of pocket.”