Deductible
(noun)
- An amount of money that must be paid before an insurance policy begins to cover a loss.
- A fixed amount that the policyholder must pay before the insurance company will pay a claim.
Origin:
Early 19th century: from deduct, on the pattern of indestructible.
Examples:
- The policy has a $500 deductible.
- You have to pay $1000 deductible before the insurance company will cover the cost of the damage.
- The health insurance plan has a $1000 deductible per year.
- The car insurance policy has a $250 deductible for collision coverage.
- The homeowners insurance policy has a $1000 deductible for wind damage.