Definition
The amount you pay for covered services or a claim before your insurance starts to pay.
What it means
A deductible is the part of a covered cost you pay yourself before insurance pays. In health insurance, if your deductible is $2,000, you pay the first $2,000 of covered services each plan year, and then you usually pay only a copayment or coinsurance. Many health plans cover preventive care, such as certain screenings and vaccines, before you meet the deductible. Family plans often have both an individual and a family deductible. In car and home insurance, the deductible is the amount subtracted from each claim payment. Choosing a higher deductible usually lowers the premium but increases what you pay when something happens. A high-deductible health plan that meets IRS rules lets you contribute to a health savings account.
Example
With a $2,000 deductible and 20% coinsurance, a $5,000 covered hospital bill costs you $2,000 + 20% of $3,000 = $2,600, if you have not met the deductible yet that year.
Illustrative numbers only. Your situation will differ.