Definition of "Deductible"

Amount that must be paid by the insured before benefits will be paid by the insurer.

The amount of money you must pay each year to cover your medical care expenses before your insurance policy starts paying.

A provision in health and property & casualty policies where the insured pays for the first portion of the loss up to a specified dollar amount or for a time period. In a time-period deductible (elimination period or waiting period) there is a specified time prior to the benefit starting. This is common in disability income policies. In dollar-amount deductible, the insured pays for the loss up to the deductible amount. For example, under a $500 deductible on an auto policy, the insured will pay any losses up to $500. If the loss were over $500, the amount over the deductible will be paid by the insurance company up to any limits in the policy.

The amount that must be paid out of pocket by the insured for covered losses before the insurance company pays a claim.