DEDUCTIBLE

(A) Insurance: Typically used in insurance policies, it is a threshold amount which the insured must pay after which the insurance will cover the remaining portion. For example, a $500 deductible for an auto collision policy makes the first $500 of repairs the responsibility of the insured, the remaining up to the policy limit is covered by the insurance company. (B) Tax: An item that is deductible from gross taxable income.