Billing & Payments
Deductible
Definition
The amount of money a policyholder must pay out of pocket before the insurance company begins to pay on a covered claim. Deductibles can be a flat dollar amount or a percentage of the insured value.
In Zach’s Words
“Your deductible is your skin in the game. If you have a $1,000 deductible and file a $5,000 claim, you pay the first $1,000 and insurance covers the other $4,000. Higher deductible = lower premium, but more out of pocket when something happens. It's a balancing act.”
— Zach Nadler, CIO