Out of pocket
'Out of pocket' refers to expenses someone must cover with their own money
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Some expenses are personal expenses, like clothes and food. However, other expenses are shared. If you get into a car accident, your insurance company might cover part of the expense, while you personally cover the rest. Or, if your company requires you to travel for work, the company might cover the cost of the flight and hotel, but you might be required to pay for transportation to the airport, for example.
In situations where expenses are shared between a person and a company, the part that a person pays is called the “out of pocket” expense.
Many U.S. car insurance policies will pay for the cost to replace a stolen car. However, that’s not the whole cost of losing your car. Victims might have to pay out of pocket for Uber rides or rental cars while they wait for their insurance claim to be processed.
This is a situation where expenses are shared (the insurance company pays for the new car; the victim pays for Uber rides or rental cars). The “out of pocket” expense is the part paid by a person from personal funds.