Deductible is a very common word in the insurance world. It is the amount you pay from your pocket, and the insurance company pays the rest.
You can reduce the insurance cost by paying a deductible. Insurance contracts with no deductible cost more than those with a deductible.
Example: You took out car insurance with a deductible of 300 €. Suppose you caused an accident and must pay a damage cost of 2000 €.
In this case, when you file the car insurance claim, you’ll pay 300 € (deductible), and the insurance company will pay 1700 € (rest).
