Category: General Knowledge | Last updated: 2026-09-18

In the context of health or auto insurance, what does a 'deductible' primarily refer to?

A) The monthly payment made to the insurance company.
B) The maximum amount the insurance company will pay out.
C) The amount the policyholder must pay out-of-pocket before insurance coverage begins.
D) A discount applied for having a clean claims history.

Explanation

A deductible is the specific amount of money that the insured policyholder must pay out of their own pocket before their insurance coverage starts to pay for a claim.

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