Meaning & use

deductible

noun·Academic

The amount a policyholder must pay before an insurance company covers the remaining cost.

See it in a sentence

Her car insurance has a five-hundred-dollar deductible for collision damage.

Choosing a higher deductible usually lowers your monthly insurance premium.

A note on using this word

In everyday use it is a noun for the payment threshold; as an adjective it describes expenses that can be subtracted from taxable income.

Words with a similar meaning

This term is best learned through its definition and examples.

Choose a synonym to suit the sentence. Meanings can overlap without being identical.

Another way to use it

2. adjective

Able to be subtracted from taxable income as an allowable expense.

Charitable donations are often tax-deductible if you itemize your return.

Make it your own

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