deductible

  

Definition

Fixed amount or percentage of an insurance claim that is the responsibility of the insured, and which the insurance company will deduct from the claim payment. Sometimes deductibles are voluntary (to qualify for a lower premium rate) but usually they are imposed by the insurer to avoid paying a large number of small claims. Also called excess. Not to be confused with tax deduction.

Use deductible in a sentence

  • When choosing a health insurance plan, I looked for one that had a low monthly premium, as well as a low deductible.

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  • He was a relatively healthy young man, so he chose the insurance plan that had the highest deductible and lowest premium that he could.

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  • I called my insurance company after last night's storm tore off parts of my roof and they said they would fix it after I paid the $500 deductible for my insurance plan.

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