Learn — Policy basics
Deductible
What an insurance deductible is, how choosing a higher or lower deductible changes your premium, and how the deductible is applied when you file a claim.
A deductible is the amount you agree to pay out of pocket on a covered claim before the insurance company pays the rest (up to policy limits).
If your deductible is 5,000, you typically pay 4,000 (subject to policy terms). Higher deductibles often mean lower premiums; lower deductibles mean the insurer steps in sooner.
The right deductible depends on your cash reserves and how often you expect to claim — not a one-size slogan.