A provision in an insurance policy setting forth the amount of liability being retained by an insured and the sharing of losses once the deductible is exhausted.
An insurance policy provision that specifies an amount to be deducted from any loss, leaving the company liable only for the excess of that stated amount.
A clause which provides that the insured will pay his/her own losses below a specified amount per loss (as with $250 deductible collision on automobiles) or that he/she will pay a certain percentage of every loss (as with 80/20 automobile collision).
A contract provision that sets forth the deductible.
(Clause de franchise) Small claims are expensive for an insurance company to handle in relation to the amount involved and in many types of insurance, a provision is made whereby the insured agrees to pay small claims in return for a reduced premium. Disappearing deductible, often found in automobile policies and homeowner's policies, uses a formula whereby the deductible applies in small losses and is gradually reduced as the size of the loss increases so that in very large losses the insurance company pays the loss in full.
A clause defining the amount of loss for which insured is liable; defines insurer's and insured's contributions to cover losses.