The deductible is the amount that the insured will have to pay in the event of a covered claim.
Let’s assume that the deductible on your auto insurance is $500. You get into an accident and find out the repairs are going to cost $5,000. In this case, the insurer will reimburse you $4,500 and you will have to pay the remaining $500 out of pocket.
However, there are exceptions such as lower deductibles for a good driving record, waiver of deductibles depending on the amount of the loss for certain “home” categories, and the type of coverage chosen.