Deductible

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de·duct·i·ble / diˈdəktəbəl/ • adj. able to be deducted, esp. from taxable income or tax to be paid. • n. (in an insurance policy) a specified amount of money that the insured must pay before an insurance company will pay a claim. DERIVATIVES: de·duct·i·bil·i·ty / -ˌdəktəˈbilitē/ n.

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DEDUCTIBLE

That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes).

The portion of an insured loss to be borne by the insured before he or she is entitled to recovery from the insurer.

Automotive insurance policies frequently include a deductible, such as $250 or $500, which the insured must pay before receiving reimbursement under the policy. Usually, the insured motorist chooses among several levels of deductible, with the policy payment being somewhat lower when the insured chooses a higher deductible.

Many types of insurance policies include a deductible amount.

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