Deductible
The agreed amount you pay toward a covered claim before the insurer pays the remaining eligible amount.
Also called
policy deductible
What it means
Your share of an eligible loss before the insurer's payment is calculated.
Example
On a covered $2,000 loss with a $500 deductible, the insurer may pay up to $1,500, subject to the policy.
Canada context
Insurance wording and mandatory coverage can differ by province, insurer and policy form. Read the declarations, endorsements and full policy wording that apply to you.
Common confusion
A deductible is not the premium and is not necessarily the same for every coverage on a policy.
Important
This plain-language explanation is general information, not legal advice or a substitute for your policy wording. Ask a licensed insurance professional about your situation.
Last reviewed August 17, 2026
Sources
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.