Deductible (noun)

1. An amount of money that must be paid before an insurance policy begins to cover a loss.
2. 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:

1. The policy has a $500 deductible.
2. You have to pay $1000 deductible before the insurance company will cover the cost of the damage.
3. The health insurance plan has a $1000 deductible per year.
4. The car insurance policy has a $250 deductible for collision coverage.
5. The homeowners insurance policy has a $1000 deductible for wind damage.