What does Insurance Deductible mean? Here is The Clear Answer

What does Insurance Deductible mean? Here is The Clear Answer

Many of us don't know what does insurance deductible means. You may even have searched for the meaning of insurance deductible on various websites but never found an answer. Lucky you if you have managed to find this article. You no longer need to bother looking for the purpose of the insurance deductible on other websites. In this article, we will present a very clear. 

Insurance Deductible
Insurance Deductible

So let's read this article to the end. Do not let you miss something important from this article. We will explain it in detail and clearly.

Insurance Deductible Definition

The insurance deductible definition is often misunderstood by some people. Many of us don't know how insurance deductions work. 

In fact, if we already know how it works, it will be easier for us to understand the definition of the insurance deductible. To know this definition, we need to know the meaning of each word. 

Insurance Deductible Meaning

An insurance deductible is the number of fees that should be paid by the owner of the insurance policy in the event of a claim. This type of insurance deductible claim is related to physical damage, non-physical losses, lawsuits. In the deductible points in the policy book, the company usually embed the phrase per one accident. 

An insurance deductible is an example of risk. Usually, this is when the customer takes All Risk car insurance. 

What does it mean when you have a $ 2000 deductible?

If we have a $ 2,000 insurance deductible, we must cover the 2000 dollars in a certain year before the coverage begins. Usually, each insurance provider has its own policy regarding this. 

This is how we understand insurance deductible. Actually, this is an easy problem. We just need to learn more about insurance deductible. We won't understand this if we don't learn it before. 

Understanding this is very important. Before we register our name with an insurance service provider, we must first read the existing policies. Thus we are not confused with terms like this.

Why does insurance have a deductible?

The function of the insurance deductible is to create a sense of responsibility for the policy owner because the insurance company does not cover all the risks that may be experienced. 

With the risk borne by the policy owner himself, automatic vigilance and a sense of responsibility in driving will always be maintained. With the deductible fee, the client becomes aware that the insurance he has is not 100% cover the cost of repairing the car.


So, the conclusion is insurance deductible can also be called own risk. Own risk, explaining a certain amount to be paid by the policyholder in the event of a claim. When buying vehicle insurance, anyone will want maximum protection benefits at an affordable premium.

With insurance deductible, it can make us more responsible for what we insure, be it for vehicles in the form of cars, motorbikes, and so on.

Thus the article about insurance deductible that we can share. Don't forget to support our channel by clicking this link. And don't forget to like our fan page here. You can see our other updated article about economics at this link. Thanks for your attention, and see you in the next article.