1. What your deductible means
ptnphoto / Shutterstock.com
Let’s start with the most basic of basics: the deductible. It’s something that’s attached to your health, auto and homeowner policies, but what is it? Nearly three-quarters of 2,000 adults surveyed by insurance website Policygenius in 2016 said they were confident they could define a deductible, but then only 50 percent did so correctly.
A deductible is simply the amount you pay out-of-pocket before your insurance kicks in. If your health insurance deductible is $6,000, you must pay $6,000 out-of-pocket before your insurance company starts paying claims for anything other than preventive services. If your $10,000 car gets totaled and your auto insurance deductible is $1,000, your insurer will pay out $9,000.