deductible
n. countablen. the specific amount of money you must pay yourself before your insurance company starts to pay for a claim. If your car repair costs $1,000 and your deductible is $200, you pay the $200 and the insurance covers the rest.
n. the fixed amount of an insured loss that the policyholder must pay out of pocket before the insurer assumes liability for the remaining costs. Often used to shift a portion of the risk to the insured party and reduce the frequency of small claims.
I chose a higher deductible to lower my monthly insurance payments.
After the minor car accident, Sarah realized her deductible was higher than the actual cost of the repairs.
Policyholders often face a trade-off between a low annual premium and a high deductible, which can lead to significant unexpected expenses in the event of a major medical emergency.
From deduct + -ible.
Commonly used in the context of health, auto, and home insurance policies.