deductible

1 of 2

adjective

de·​duct·​ible di-ˈdək-tə-bəl 

dē-

: allowable as a deduction

expenses that are deductible from taxable income

deductibility

di-ˌdək-tə-ˈbi-lə-tē 

dē-;

noun

deductible

2 of 2

noun

plural deductibles

: the amount of financial loss specified in an insurance policy that the insurer will not be held responsible for and that the insurance holder must pay

The deductible on your insurance is the amount of money on an insurance claim you would pay before the insurance company pays. It's what you'll be paying out of pocket prior to the insurance coverage.

—Steve Fiorillo

also : a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured against

Examples of deductible in a Sentence

Adjective

The trip was deductible as a business expense.

Noun

I have an insurance policy with a $1,000 deductible.

Recent Examples on the Web

Adjective

Increasing a $200 deductible to $500 could reduce collision and comprehensive coverage costs by as much as 30%, according to the Insurance Information Institute. —Liz Knueven, CNBC, 4 Dec. 2024

The difference in most plans is your share of the cost and the deductible. —Megan Stringer, Axios, 4 Dec. 2024

Noun

Reimbursement 70%, 80% or 90% Deductibles Lemonade has relatively high deductibles, ranging from $500 to $750. —Liz Knueven, CNBC, 2 Dec. 2024

However, due to regulations such as community rating, essential health benefits, the medical loss ratio, and the ban on coverage caps, unsubsidized premiums in the Marketplace are prohibitively expensive, often accompanied by high deductibles. —Ge Bai, Forbes, 2 Dec. 2024

Word History

First Known Use

Adjective

1856, in the meaning defined above

Noun

1922, in the meaning defined above

Phrases Containing deductible

• tax-deductible

Legal Definition

deductible

1 of 2 adjective

de·​duc·​ti·​ble di-ˈdək-tə-bəl 

: allowable as a deduction

deductibility

-ˌdək-tə-ˈbi-lə-tē 

noun

deductible

2 of 2 noun

: a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured against

also : the amount specified in such a clause compare franchise sense 4a