Deductible Insurance Amount Law and Legal Definition

Deductible Insurance Amount is an amount of loss borne or paid by the policyholder. Either a specified amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage. The amount of a deductible is almost always proportional to the amount of the premiums charged by the insurers. In order to have a lower deductible, the policy holder would have to agree to higher premiums. For those who want lower premium payments, they must agree to a higher deductible.