A deductible is a specific amount of money that an individual must pay out of pocket before their insurance coverage begins to cover the remaining expenses. It is typically defined in insurance policies, such as health insurance or car insurance, and varies depending on the policy and type of coverage. Once the deductible is paid, the insurance will then cover a percentage or the entirety of the costs, as outlined in the policy. The purpose of a deductible is to share the financial burden between the insurance company and the policyholder, promoting responsible use of insurance coverage and preventing excessive claims.
