A deductible is an amount that you have to pay in case of a covered event. Insurers and insurance companies agree on deductibles, and they are outlined in policy terms. Simply put, if you have a deductible that is $600 and the whole claim is $4000, you will have to pay the $600 while the insurance company will take care of the remaining $3400. In case the loss is under your deductible, you will have to pay for all of it even though you have coverage.