Insurance Deductible
An insurance deductible is the amount you pay out of pocket on a claim before your insurance starts paying. A $1,000 deductible means you cover the first $1,000 of a covered loss. Choosing a higher deductible lowers your premium but raises your cost when something happens.
The right deductible is one you could comfortably cover from your emergency fund. Raising it is a smart way to cut premiums if you have savings to absorb the risk; keeping it low makes sense if a sudden bill would be hard to pay.