Dictionary 101

Okay so today I am here to explain a common term used in the insurance world. The word is:
Deductible 
Definition: a specified amount of money that the insured must pay before an insurance company will pay a claim.
This means that a certain amount of money that is set-forth in your policy must be paid by the one being insured (Most likely you unless you are an insurance agent); in order for the insurance company to pay their end of the bargain.
How it works: Let us say that you have a $600 deductible on your auto insurance policy. If you get into a crash that causes $300 worth of damage you must pay out of pocket because it is lower than your deductible. If you have damages that are $7000 you pay the first $600 and the insurance company pays the balance of $6,400.
Your deductible is different on every policy you have whether it be homeowners, auto, secondary home, wedding, whatever the case may be. You must look at your specific policy or call your agent to find out your deductible on each individual policy.