Definition, Meaning & Synonyms
deductible-clause
noun
/dɪˈdʌktəbl klɔːz/
Definition
A deductible clause is a specific provision within an insurance policy that outlines the amount of money that the policyholder must pay out-of-pocket before the insurance coverage kicks in.
Examples
- The auto insurance policy had a deductible clause requiring the driver to pay the first $500 of any accident claim.
- Before filing a claim, it’s important to review the deductible clause in your homeowner’s policy to understand your out-of-pocket expenses.
Meaning
It refers to the amount the insured must pay before receiving benefits from an insurer. This clause is often found in various types of insurance policies, including health, auto, and property insurance.
Synonyms
- excess clause
- out-of-pocket clause
- cost-sharing provision
