$500 deductible

A “$500 deductible” refers to the amount you are required to pay out-of-pocket on an insurance claim before your insurance coverage kicks in. This term is commonly used in health, auto, and home insurance policies. Choosing a $500 deductible typically means you will pay $500 toward any covered loss or expense, after which the insurer will cover the remaining costs up to the policy limits. Balancing your deductible amount with your premium payments is an important consideration when selecting an insurance plan.