In the context of insurance, what does the term 'deductible' refer to?

A) The monthly payment made to the insurance company for coverage.

B) The maximum amount the insurance company will pay out for a claim.

C) The amount of money the policyholder must pay out of pocket before the insurance company starts paying for a claim.

D) The total value of the insured asset.

Explanation

A deductible is the amount of money you have to pay towards a loss before your insurance company starts to pay a claim. For example, if your car insurance has a $500 deductible, you would pay the first $500 of repair costs, and your insurer would cover the rest.

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