What is a deductible?
The Bankrate.com financial term of the day is: "deductible."
A deductible saves you money today, when you buy insurance. But it could mean you'll pay tomorrow, when you have to make a claim. The deductible is the amount of the covered loss that you agree to pay out of your own pocket. If, for example, you have a $500 deductible as part of your car insurance policy, you're on your own to take care of the first $500 in costs. The insurance will pay anything beyond that.
With insurance, a higher deductible will mean a lower premium. But you can also expect to take a bigger personal hit when you make a claim.
To find the best insurance for you, visit the insurance section at Bankrate.com.