(US, insurance) Amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
Deductible Sentence Examples
The way to calculate the portion of the expense that is deductible for business purposes is as follows: Figure out the square footage of your home that is used for business purposes and the total square footage of your home.
It can also serve as a tax deductible receipt.
In other words, if you want to have a $0 deductible, and have the insurance company be completely responsible for all claim costs, you will pay more every month than a policyholder who is willing to have a higher deductible.
However, keep in mind that if you do try to increase your deductible as much as possible, you'll need to have enough cash on hand in the case of a major emergency so that you can actually pay for damages up to the amount of your deductible.
By raising your deductible, your insurance company will lower your car insurance rate since you are taking over some of the burden, but be careful not to make a deductible so high that you can't afford it in the event of an accident.