What is a deductible and why do they exist?

Published by Chris Harvey October 9, 2008

A deductible is a way for the travel insurance company to reduce claims and your premium. If your policy has a deductible, you pay that amount first and then the insurance company picks up the rest.  Most travel insurance polices have very low deductibles, if any, and some will even waive the deductible for an additional fee. Most travel medical policies have a deductible that ranges from $0 to $2500.  The higher the deductible, the lower the cost of insurance.