Insurance Learning Center > Insurance Glossary > Deductible

Define: Deductible

Deductible

A deductible is the amount of loss that an insured pays before the insurance coverage will begin to pay. For example, if you have an back into an object causing $700 in damage to your car, and you have a $500 collision deductible, your insurance company will pay the difference between the amount of collision damage ($700) and your deductible ($500). This would result in a claim payment of $200.