What does Deductible Mean?

A deductible is a specified amount of money that must be paid before an insuring-type entity will pay money towards a claim. The most common situations in which deductibles come into play are with car insurance (where you must pay a deductible before the insurance company will pay the remaining money towards the repair of a car resulting from damage, usually due to a car accident) and health insurance (where the insurer pays health care bills above and beyond the deductible amount).