CANADIAN INSURANCE TERM
Deductible
An agreed amount the insured person is responsible for paying on a covered claim before the insurer pays the remaining eligible amount.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermDeductible
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Deductible mean?
An agreed amount the insured person is responsible for paying on a covered claim before the insurer pays the remaining eligible amount.
Changing a deductible can change how much risk you retain and can also affect the premium. Some policies or causes of loss may use different deductibles.
Deductible in practice
If a covered loss is C$8,000 and a C$1,000 deductible applies, the policyholder generally absorbs the first C$1,000 and the insurer considers the remaining eligible amount under the policy.