What does a deductible never apply to in the context of insurance claims?

A deductible is an amount that the insured must pay out of pocket before the insurance company begins to cover remaining costs for a claim. In the context of insurance claims, the deductible applies to the insured's losses directly, meaning that they bear this cost before any insurance money kicks in.

In this situation, the third party is not subject to the insured’s deductible because they are not the policyholder. Rather, they may be a separate individual or entity affected by the incident for which insurance is being claimed. If the claim involves damages for which the insured is liable, the insurance company pays the agreed-upon amount (after the deductible) directly to the third party for their losses, while the deductible is a concern only for the insured and the insurance policyholder’s claim.

In summary, a deductible does not apply to the third party involved in a claim, as they are not the ones responsible for paying the deductible; it is solely the insured who must meet their deductible before receiving benefits from their policy.