Decoding Doctor’s Office Deductibles Blue Cross and Blue Shield of from connect.bcbsil.com What is an Insurance Deductible? An insurance deductible is the amount of money that you, as the policyholder, must pay out of pocket before your insurance coverage kicks in and starts paying for any covered losses or damages. Deductibles are a common feature of most insurance policies, including auto insurance, homeowners insurance, and health insurance. How Does an Insurance Deductible Work? Let's say you have a $500 deductible on your auto insurance policy and you get into an accident that results in $2,000 worth of damages to your vehicle. In this scenario, you would be responsible for paying the first $500, and your insurance company would cover the remaining $1,500. Types of Insurance Deductibles There are two main types of insurance deductibles: fixed deductibles and percentage deductibles. 1. Fixed Deductibles: These deductibles have a specific dollar amount that you must pay befo...