Deductible - 1

What is a deductible? Something that most insurance contracts include. It can vary from coverage to coverage on a policy, but its intent remains the same.

When you enter in an insurance agreement with a deductible, you agree to pay x amount of dollars, should a claim under that coverage occur. Your insurance company will pay the remainder.

So for example, if you're deemed at fault in an auto claim, the collision coverage would kick in. The deductible is your portion of the loss to pay. The insurance company would step in and pay the remaining balance.