It’s the amount that is deducted from your claim payment. In other terms, it’s the share of the loss or damage that you need to cover yourself.
IFor instance, when you got your insurance, your car was valued at AED 70,000. For such a value, your deductible equals AED 500. If you file a claim for damages amounting to AED20,000, your total insurance payout will be
AED 20,000 - AED 500 = AED 19,500
Having to pay a part of the damage yourself might sound unfair at first, but it’s the best way to keep the cost of your insurance at a good price. Without the deductibles, the insurance premium would skyrocket, because the amount of paid out claims would be much higher.