What Is Deductible?
A deductible is the amount you pay out of pocket on a claim before your insurance starts paying. A higher deductible usually lowers your premium; a lower deductible means less out-of-pocket cost when you claim.
For example, with a $1,000 deductible on a $5,000 covered loss, you pay the first $1,000 and your insurer pays $4,000. Deductibles apply per claim (not per year), and different coverages on the same policy can carry different deductibles.
Frequently asked questions
What does a deductible mean in insurance?
A deductible is the part of a covered claim you pay yourself before your insurer pays the rest. For example, on a $5,000 covered loss with a $1,000 deductible, you pay $1,000 and the insurer pays $4,000.
Is a higher deductible better?
A higher deductible lowers your premium but means you pay more when you claim. It makes sense if you could comfortably cover that amount from savings and you rarely make small claims.
Do I pay a deductible if the accident was not my fault?
On an Ontario auto policy there is typically no deductible on the DCPD portion of a claim when you are not at fault. On home and other property claims, the deductible usually applies no matter who caused the loss.
Questions about Deductible?
Our Ontario brokers can explain how it applies to your policy.
Talk to a Roughley broker