Insurance deductible
The amount you pay yourself on a covered loss or medical bill before your insurance starts to pay.
On car, renters and homeowners insurance, the deductible usually applies to each claim. On health insurance, it is a yearly total that resets each plan year.
A higher deductible lowers your premium, because you take on more of each loss. Choose one you could pay from savings without borrowing.
Example
A $3,200 car repair with a $1,000 deductible: you pay $1,000 and the insurer pays $3,200 − $1,000 = $2,200.