What is an insurance deductible?

An insurance deductible is the amount of money that the insured person is responsible for paying out-of-pocket for a claim before their insurance company begins covering the costs. In other words, the insured person is responsible for paying the deductible before their insurance company will begin to provide coverage on the claim. For example, if a person has an insurance policy with a $1,000 deductible, they will be responsible for paying the first $1,000 of a claim. Once that amount has been paid, the insurance company will begin to pay out the remainder of the claim costs. In California, the minimum deductible for an insurance policy is typically determined by the specific type of coverage the policyholder purchased.

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What is an insurance deductible?

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