Okuzeka
Insurance vocabulary · Coverage & Exclusions

Deductible

Meaning in insurance, with examples

/dɪˈdʌktəbəl/nounCore term

In insurance, deductible means: The part of each loss that the customer pays before the insurance company starts paying. A higher one usually means a lower premium.

In Turkish: muafiyet, tenzili muafiyet

How it is used

Explained in every sales conversation for car, home and health insurance. A deductible can be a fixed amount or a percentage, and customers choose a higher or lower one. The British word is 'excess'.

Example sentences

  1. With a 5,000 lira deductible, the insurer paid 37,000 of the 42,000 lira repair bill.

  2. If you choose a higher deductible, your premium drops by about 15 percent.

Common collocations

  • pay the deductible
  • high deductible
  • deductible amount
  • choose a deductible
  • per-claim deductible
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
  • coverageThe protection a policy gives: which risks, losses and amounts the insurance company will pay for.
  • co-paymentThe part of a medical bill that the insured person pays each time they use a health service, either a fixed amount or a percentage.
  • claimA formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Coverage & Exclusions

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This page explains English vocabulary for learners. It is not financial advice.