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Texas insurance glossary

Deductible

A deductible is the amount of a claim the policyholder keeps: the insurer pays the covered loss above it, and nothing at or below it.

Sources checked

On an auto policy it applies to collision and comprehensive and never to liability — the parts of a policy that pay other people carry limits rather than deductibles.

Raising it lowers the premium and moves risk back onto the household. That is only a saving if the household can produce the higher figure in the week the car is damaged rather than in the abstract.

Texas homeowners policies complicate this with percentage deductibles for wind and hail, which behave differently and belong to the homeowners page.

Sources: TDI — automobile insurance guide (CB020); TDI — home insurance glossary. Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Premium A premium is the amount charged for an insurance policy for a stated term, calculated from a carrier’s rates as filed with the Texas Department of Insurance.
  • Collision coverage Collision coverage pays to repair or replace the insured’s own vehicle after it hits another vehicle or an object, or overturns, whoever was at fault.
  • Comprehensive coverage Comprehensive coverage pays for damage to the insured’s own vehicle from causes other than collision, such as theft, hail, fire, flood, vandalism and animal strikes.
  • Policy limits Policy limits are the most an insurer will pay under a given coverage, stated per person, per occurrence, or per policy period on the declarations page.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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