deductible

Fixed amount or percentage of an insurance claim that is the responsibility of the insured, and which the insurance company will deduct from the claimpayment. Sometimes deductibles are voluntary (to qualify for a lower premium rate) but usually they are imposed by the insurer to avoid paying a large number of small claims. Also called excess. Not to be confused with tax deduction.

Usage Example

My insurance company only covered part of my surgery expenses, and the rest was a deductible that I had to pay out of pocket.