An insurance deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses. For example, if you have a health insurance policy with a $1,000 deductible and you receive a medical bill for $2,000, you would be responsible for paying the first $1,000 and your insurance would cover the remaining $1,000. Deductibles are how risk is shared between you, the policyholder, and your insurer.

Here are some key points to keep in mind about insurance deductibles:

• The amount of the deductible is established by the terms of your coverage and can be found on the declarations page of standard homeowners, condo owners, renters, and auto insurance policies.
• Policies with lower deductibles typically have higher premiums, meaning youll pay more each month for your insurance coverage.
• Some policies may have separate deductibles for different types of coverage, such as collision and comprehensive coverage in auto insurance.
• The deductible on an auto or homeowners insurance policy’s coverage will apply each time you file a claim.
• Insurers offer a range of deductibles, and you can typically choose the deductible that fits your needs.
• Your deductible typically affects your premium, or the cost you pay for your policy. The higher your deductible, the lower your premium is likely to be.