An insurance deductible is a specific amount of money that an insured individual or entity must pay out of pocket before their insurance coverage kicks in and begins to cover the leftover costs of an insured loss or damage.

The deductible amount is typically specified in the insurance policy and can vary depending on the type of insurance coverage and the level of risk associated with the insured individual or entity. In general, a higher deductible will result in lower insurance premiums, while a lower deductible will result in higher premiums.

The purpose of a deductible is to encourage policyholders to take measures to prevent losses and to share the financial risk with the insurance company.