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The Collaborative International Dictionary
Deductible

Deductible \De*duct"i*ble\, a.

  1. Capable of being deducted, taken away, or withdrawn.

    Not one found honestly deductible From any use that pleased him.
    --Mrs. Browning.

  2. Deducible; consequential.

Douglas Harper's Etymology Dictionary
deductible

1610s, "that may be deduced," also "that may be deducted;" from Latin deducere (see deduce) + -ible. As a noun, "deductible thing," by 1927.

Wiktionary
deductible

a. That can be deducted n. (context US insurance English) Amount of expenses that must be paid out of pocket before an insurer will pay any expenses.

WordNet
deductible
  1. adj. acceptable as a deduction (especially as a tax deduction) [ant: nondeductible]

  2. n. (taxes) an amount that can be deducted (especially for the purposes of calculating income tax)

  3. a clause in an insurance policy that relieves the insurer of responsibility to pay the initial loss up to a stated amount

Wikipedia
Deductible

In an insurance policy, the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses. In general usage, the term deductible may be used to describe one of several types of clauses that are used by insurance companies as a threshold for policy payments.

Deductibles are typically used to deter the large number of claims that a consumer can be reasonably expected to bear the cost of. By restricting its coverage to events that are significant enough to incur large costs, the insurance firm expects to pay out slightly smaller amounts much less frequently, incurring much higher savings. As a result, insurance premiums are typically cheaper when they involve higher deductibles. For example, health insurance companies offer plans with high premiums and low deductibles, or plans with low premiums and high deductibles. One plan may have a premium of $1,087 a month with a $6,000 deductible, while a competitive plan may have a premium of $877 a month with a $12,700 deductible. The consumer with the $6,000 deductible will have to pay $6,000 in health care costs before the insurance plan pays anything. The consumer with the $12,700 deductible will have to pay $12,700.

Deductibles are normally provided as clauses in an insurance policy that dictate how much of an insurance-covered expense is borne by the policyholder. They are normally quoted as a fixed quantity and are a part of most policies covering losses to the policy holder. The insurer then becomes liable for claimable expenses that exceed this amount (subject to the maximum sum claimable indicated in the contract). Depending on the policy, the deductible may apply per covered incident, or per year. For policies where incidents are not easy to delimit (health insurance, for example), the deductible is typically applied per year.

Several deductibles can be set by the insurer based on the cause of the claim. For example, a single housing insurance policy may contain multiple deductible amounts for loss or damage arising from theft, fire, natural calamities, evacuation etc.

There are also deductible reimbursement programs that reimburse a deductible in the event of an automobile, home, boat/yacht or health insurance claim.

Usage examples of "deductible".

Contributions to the Project Gutenberg Literary Archive Foundation are tax deductible to the full extent permitted by U.

A retroactive statute imposing a graduated tax at rates different from those in the general income tax law, on dividends received in a prior year which were deductible from gross income under the law in effect when they were received, is not obnoxious to the equal protection clause.

He just had no clue when it came to the Medicare rules and regulationswhich items were billable and which would automatically be disallowed, co-payments, deductibles, claims for fee-based services.

He listed only his own annual dues to Bar Admissions and Discipline as a deductible partnership expense, never Feaver's.

You're paying these million, five million dollar claims from your own pocket, tens of millions in coverage but you've kept raising your deductibles to meet your premiums up twenty percent last year probably another twenty or thirty this one and zero for your legal costs fighting these malpractice suits growing like weeds wherever you.

I mean why are you telling me all this about millions in deductibles and God knows else I can't even.

I mean you look Harry, you brought her in there and all your fine venerable old senior partners could see was dollar signs, they knew she's a problem client Bill Peyton knew it everybody knows it, she'd sue the Queen of England if it occurred to her and you're going to talk to Bill Peyton about bank loans and balance sheets and these millions in deductibles on this insurance they've got on you?

He just had no clue when it came to the Medicare rules and regulations-which items were billable and which would automatically be disallowed, co-payments, deductibles, claims for fee-based services.

So while President Fairbank was running around focus-grouping about tariffs on Brazilian steel and whether to increase Medicaid deductibles by four percent, Morgan Boyd was busy sketching out a plan to secure the future of our way of life.

After breakfast, I tidied up and then checked my automobile insurance policy and determined that the replacement of my car window was covered, after a fifty-dollar deductible.

Read all the fine print for tax form 1040 and discover all the deductible loopholes available to you.

Oh, by the way, my personal property insurance has a hundred thousand deductible so with the repairs to the floor downstairs this whole thing was a wash for me.

Either it's reimbursable or it's deductible, and of course we aren't paying the tax.

I looked around for the ticket machine and saw it beside the door we'd come in, but when I tried to get it to spit out a number for us the machine wouldn't let me have one until we'd entered our insurance stuff and paid the deductible.