Definition: A Deductible is the amount the insured (the person that has the insurance policy) is required and obligated to pay according to the insurance policy. The deductible is chosen by the insured and is usually applied to insurance policy coverages such as comprehensive and collision. Generally the lower the deductible, the higher the insurance policy premium.
Common Misspellings: deductable
Examples:
After Pat filed her insurance policy claim, her agent said that they would cover the entire cost of replacing the hood of her car after she contributed her deductible of $500.
