Coverage
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.
Questions about Deductible?
Our Ontario brokers can explain how it applies to your policy.
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Reviewed by Roughley Insurance Brokers Ltd. — licensed Ontario insurance brokers since 1945. Last updated May 29, 2026. ← Back to the glossary