What is a Deductible?

👉 A deductible is the amount of money you pay out of pocket before your insurance starts to help.

Think of it like this:

You and your insurance company are a team.

The deductible is your part of the responsibility before they step in.

Example: If you have a $500 deductible and a $2,000 repair bill, you pay $500 and your insurance covers the remaining $1,500.

🏟 Cover Charge Analogy

Think of going to a concert:

The cover charge at the door is your deductible.

Once you’ve paid it, the rest of the show (the big expenses) is taken care of by insurance.

🚗 Car Example (real-life)

Your car repair costs $2,000.

Deductible = $500 (your “cover charge”).

Insurance pays the rest = $1,500.