You do not have permission to edit this page, for the following reasons:

This IP address has been blocked from editing Wikipedia.
This does not affect your ability to read Wikipedia pages.
Most people who see this message have done nothing wrong. Some kinds of blocks restrict editing from specific service providers or telecom companies in response to recent abuse or vandalism, and can sometimes affect other users who are unrelated to that abuse. Review the information below for assistance if you do not believe that you have done anything wrong.

The IP address or range 44.201.0.0/16 has been blocked (disabled) by ‪ST47‬ for the following reason(s):

The IP address that you are currently using has been blocked because it is believed to be a web host provider. To prevent abuse, web hosts may be blocked from editing Wikipedia.
You will not be able to edit Wikipedia using a web host provider because it hides your IP address, much like a proxy or VPN.
We recommend that you attempt to use another connection to edit. For example, if you use a proxy or VPN to connect to the internet, turn it off when editing Wikipedia. If you edit using a mobile connection, try using a Wi-Fi connection, and vice versa. If you are using a corporate internet connection, switch to a different Wi-Fi network. If you have a Wikipedia account, please log in.
If you do not have any other way to edit Wikipedia, you will need to request an IP block exemption.

How to appeal if you are confident that your connection does not use a web host's IP address:
If you are confident that you are not using a web host, you may appeal this block by adding the following text on your talk page: ((unblock|reason=Caught by a web host block but this host or IP is not a web host. My IP address is _______. Place any further information here. ~~~~)). You must fill in the blank with your IP address for this block to be investigated. Your IP address can be determined here. Alternatively, if you wish to keep your IP address private you can use the unblock ticket request system. There are several reasons you might be editing using the IP address of a web host (such as if you are using VPN software or a business network); please use this method of appeal only if you think your IP address is in fact not a web host.

Administrators: The IP block exemption user right should only be applied to allow users to edit using web host in exceptional circumstances, and they should usually be directed to the functionaries team via email. If you intend to give the IPBE user right, a CheckUser needs to take a look at the account. This can be requested most easily at SPI Quick Checkuser Requests. Unblocking an IP or IP range with this template is highly discouraged without at least contacting the blocking administrator.

This block will expire on 23:54, 31 July 2024.

Even when blocked, you will usually still be able to edit your user talk page, as well as email administrators and other editors.

For information on how to proceed, please read the FAQ for blocked users and the guideline on block appeals. The guide to appealing blocks may also be helpful.

Other useful links: Blocking policy · Help:I have been blocked
Your IP address is in a range that has been blocked on all Wikimedia Foundation wikis. The block was made by ‪AntiCompositeNumber‬. The reason given is Open proxy/Webhost: Visit the FAQ if you are affected .
- Start of block: 13:55, 18 August 2022
- Expiry of block: 13:55, 18 April 2025
Your current IP address is 44.201.28.123. The blocked range is 44.201.0.0/16. Please include all above details in any queries you make. If you believe you were blocked by mistake, you can find additional information and instructions in the No open proxies global policy. Otherwise, to discuss the block please post a request for review on Meta-Wiki. You could also send an email to the stewards VRT queue at stewards@wikimedia.org including all above details.

You can view and copy the source of this page:

((Short description|Out-of-pocket expense requirement in insurance))
((For|tax deductible|tax deduction))
((More citations needed|date=January 2009))

In an [[insurance]] policy, the '''deductible''' (in British English, the '''excess''') is the amount paid
[[Out-of-pocket expenses|out of pocket]] by the policy holder before an insurance provider will pay any expenses.<ref>((cite book |last1 = O'Sullivan |first1 = Arthur |author-link = Arthur O'Sullivan (economist) |first2 = Steven M. |last2 = Sheffrin |author-link2=Steven M. Sheffrin |title = Economics: Principles in Action |url = https://archive.org/details/economicsprincip00osul |url-access = limited |publisher = Pearson Prentice Hall |year = 2003 |location = Upper Saddle River, New Jersey |page = [https://archive.org/details/economicsprincip00osul/page/n540 524] |isbn = 0-13-063085-3))</ref> In general usage, the term ''deductible'' may be used to describe one of several types of clauses that are used by insurance companies as a threshold for policy payments.

Deductibles are typically used to deter the large number of claims that a consumer can be reasonably expected to bear the cost of. By restricting its coverage to events that are significant enough to incur large costs, the insurance firm expects to pay out slightly smaller amounts much less frequently, incurring much higher savings.((citation needed|date=November 2015)) As a result, [[insurance premium]]s are typically cheaper when they involve higher deductibles. For example, health insurance companies offer plans with high premiums and low deductibles, or plans with low premiums and high deductibles. One plan may have a premium of $1,087 a month with a $6,000 deductible, while a competitive plan may have a premium of $877 a month with a $12,700 deductible. The consumer with the $6,000 deductible will have to pay $6,000 in health care costs before the insurance plan pays anything. The consumer with the $12,700 deductible will have to pay $12,700.<ref>[https://money.cnn.com/2013/11/21/news/economy/obamacare-affordable/ How 'affordable' are Obamacare plans?] By Tami Luhby, CNN, November 21, 2013</ref>

Deductibles are normally provided as clauses in an insurance policy that dictate how much of an insurance-covered expense is borne by the policyholder. They are normally quoted as a fixed quantity and are a part of most policies covering losses to the policy holder. The insurer then becomes liable for claimable expenses that exceed this amount (subject to the maximum sum claimable indicated in the contract). Depending on the policy, the deductible may apply per covered incident, or per year. For policies where incidents are not easy to delimit (health insurance, for example), the deductible is typically applied per year.

Several deductibles can be set by the insurer based on the cause of the claim. For example, a single housing insurance policy may contain multiple deductible amounts for loss or damage arising from theft, fire, natural calamities, evacuation, etc.

There are also deductible reimbursement programs that reimburse a deductible in the event of an automobile, home, boat/yacht or health insurance claim.

== Difference from franchise ==
A deductible should not be confused with a franchise. A deductible represents a part of the expense for which the insurer is not liable, but the franchise is a pure threshold beyond which liability for the entire expense is transferred to the insurer. For example, with a franchise of $20,000, a claim of $19,900 is borne entirely by the policyholder, and a claim of $20,100 is borne entirely by the insurer.

== Difference from excess ==
An '''excess''' can refer to one of two very different insurance terms.

'''Excess post-hospitalization''' is the extra costs borne by the insured over the maximum coverage that the insurance company pays. This terminology is especially common in areas of insurance sensitive to loss (like [[liability insurance]]) and is addressed by the insurance market through [[Insurance#Insurance companies|excess line insurance companies]] through mechanisms such as [[excess insurance]], [[gap insurance]], and [[umbrella insurance]].

'''Excess pre-hospitalization''' is an insurance exception that is often interchangeably but wrongly referred to also as an '''excess''' or a '''deductible'''. It is "the first amount of the claim which the insured has to bear. If the insured has an excess of $500 and the total repair costs $3,000, then the insured has to pay $500 while the insurer pays the remaining $2,500."<ref name="Vehicle Owners FAQ">From Vehicle Owners FAQ on Singapore's Auto Insurance: http://www.vehicleowners.com/FAQExcessFreeInfo.php ((Webarchive|url=https://web.archive.org/web/20130504013629/http://www.vehicleowners.com/FAQExcessFreeInfo.php |date=2013-05-04 ))</ref>

Note that this different meaning does not apply to the British meaning of the term.

== Automobile and property insurance ==
In a typical [[automobile insurance]] policy, a deductible applies to claims arising from damage to or loss of the policyholder's own vehicle whether the damage or loss is caused by [[car accident|accidents]] for which the holder is responsible or by [[vandalism]] or [[theft]]. Depending on the policy, the deductible may differ by the type of expense incurred that triggers the insurance claim.<ref name="Vehicle Owners FAQ"/>

Third-party [[legal liability|liability]] coverages including auto liability, general liability, garage keepers, inland marine, professional liability and workers compensation are also written with deductibles. the deductibles on commercial liability policies are known as third-party deductibles or liability deductibles.  Because the insured and claimant are not the same entity, insurers cannot pay the claim minus the deductible. That creates a receivable owed from the insured to the insurer. The complexity of identifying these third-party deductible receivables often causes many to be missed by the insurer and millions of dollars to go uncollected.<ref>((cite news |first=Joseph |last=Warnagiris |title= Collecting Third Party Deductibles |url=http://www.propertycasualty360.com/2009/02/02/collecting-third-party-deductibles|publisher= Claims Magazine |date=  February 2009))</ref>

An insured has the option to accept an appearance allowance that can be used towards their deductible. Appearance allowances help manage repair costs by allowing for the insured to choose not to fix expensive parts that have minor damage and using the money towards their deductible.<ref>((Cite journal|last1=Lee|first1=Sharon M.|last2=Edmonston|first2=Barry|date=2010|title="Canadian" as National Ethnic Origin: Trends and Implications|journal=Canadian Ethnic Studies|volume=41|issue=3|pages=77–108|doi=10.1353/ces.2010.0040|s2cid=144776965|issn=1913-8253))</ref>

== Health and travel insurance ==
((Main|Copayment))
Most [[health insurance]] policies and some [[travel insurance]] policies have deductibles as well. The type of health insurance deductibles can also vary, as individual amounts and family amounts.

The nature of medical treatment makes the insured often face multiple medical expenses spread over several days for a single illness or injury. Therefore, health insurance deductibles often tend to be imposed on a term basis (e.g. annually), rather than a per visit threshold.<ref>[http://www2.ups.edu/humanresources/2006_benefits/Benefits2006-FAQ.htm#co-payments What is the difference between co-payments, coinsurance, and deductibles?]</ref> However, major medical insurance policies may have a per visit excess, which often does not cover the cost of routine visits to a GP unless it is certified to be a part of a continuous treatment, and the bills can be collated in a single claim.

== Industrial and commercial insurance ==
Industrial risks commonly have the deductible expressed as a percentage of the loss, often though not always with a minimum and maximum amount. That is similar to [[co-insurance]] in which the company pays a certain percentage of the losses, coupled with minimum and maximum payment thresholds. For example, with a deductible of 10% with a minimum of $1,500 and a maximum of $5,000, a claim of $25,000 would incur a deductible of $2,500 (i.e. 10% of the loss), and the resulting payment would be $22,500. A claim below $15,000 would incur the minimum deductible of $1,500, and a claim above $50,000 would incur the maximum deductible of $5,000.

In commercial insurance, '''retention''' may sometimes be used as synonymous with '''deductible''', as both are costs of loss ultimately born by the insured.

==See also==
*[[Co-insurance]]
*[[Copayment]]
*[[Out-of-pocket expense]]

==References==
((Reflist))

== External links ==
((wiktionary|franchise))
((Wiktionary))
*((cite news |first=Joseph |last=Connelly |title= Homeowner's Insurance & the Claims Process - Radio Interview March 3, 2008|url=http://www.lisamacci.com/thejusticehour/archives.html|work=WPBR - The Justice Hour with Lisa Macci |date=  March 3, 2008|access-date=2008-06-27 ))
*((cite news |first=Joseph |last=Warnagiris |title= Collecting Third Party Deductibles |url=http://www.propertycasualty360.com/2009/02/02/collecting-third-party-deductibles|publisher= Claims Magazine |date=  February 2009))

((Insurance))
((Authority control))

[[Category:Insurance]]
[[Category:Health economics]]

Pages transcluded onto the current version of this page (help):

Deductible (edit)
Template:Ambox (view source) (template editor protected)
Template:Authority control (view source) (template editor protected)
Template:Category handler (view source) (protected)
Template:Citation needed (view source) (protected)
Template:Cite book (view source) (protected)
Template:Cite journal (view source) (protected)
Template:Cite news (view source) (protected)
Template:Delink (view source) (protected)
Template:Find sources mainspace (view source) (template editor protected)
Template:Fix (view source) (protected)
Template:Fix/category (view source) (protected)
Template:For (view source) (template editor protected)
Template:Hlist/styles.css (view source) (protected)
Template:Insurance (edit)
Template:Main (view source) (template editor protected)
Template:Main other (view source) (protected)
Template:More citations needed (view source) (template editor protected)
Template:Navbox (view source) (template editor protected)
Template:Pagetype (view source) (protected)
Template:Plainlist/styles.css (view source) (protected)
Template:Reflist (view source) (protected)
Template:Reflist/styles.css (view source) (protected)
Template:SDcat (view source) (protected)
Template:Short description (view source) (protected)
Template:Short description/lowercasecheck (view source) (protected)
Template:Side box (view source) (template editor protected)
Template:Sister project (view source) (template editor protected)
Template:Webarchive (view source) (template editor protected)
Template:Wiktionary (view source) (template editor protected)
Module:Arguments (view source) (protected)
Module:Authority control (view source) (template editor protected)
Module:Authority control/config (view source) (template editor protected)
Module:Category handler (view source) (protected)
Module:Category handler/blacklist (view source) (protected)
Module:Category handler/config (view source) (protected)
Module:Category handler/data (view source) (protected)
Module:Category handler/shared (view source) (protected)
Module:Check for unknown parameters (view source) (protected)
Module:Citation/CS1 (view source) (protected)
Module:Citation/CS1/COinS (view source) (protected)
Module:Citation/CS1/Configuration (view source) (protected)
Module:Citation/CS1/Date validation (view source) (protected)
Module:Citation/CS1/Identifiers (view source) (protected)
Module:Citation/CS1/Utilities (view source) (protected)
Module:Citation/CS1/Whitelist (view source) (protected)
Module:Citation/CS1/styles.css (view source) (protected)
Module:Delink (view source) (protected)
Module:Disambiguation/templates (view source) (protected)
Module:EditAtWikidata (view source) (protected)
Module:Find sources (view source) (template editor protected)
Module:Find sources/config (view source) (template editor protected)
Module:Find sources/links (view source) (template editor protected)
Module:Find sources/templates/Find sources mainspace (view source) (template editor protected)
Module:For (view source) (template editor protected)
Module:Format link (view source) (template editor protected)
Module:Hatnote (view source) (template editor protected)
Module:Hatnote/styles.css (view source) (template editor protected)
Module:Hatnote list (view source) (template editor protected)
Module:Labelled list hatnote (view source) (template editor protected)
Module:Message box (view source) (protected)
Module:Message box/ambox.css (view source) (protected)
Module:Message box/configuration (view source) (protected)
Module:Namespace detect/config (view source) (protected)
Module:Namespace detect/data (view source) (protected)
Module:Navbar (view source) (protected)
Module:Navbar/configuration (view source) (protected)
Module:Navbar/styles.css (view source) (protected)
Module:Navbox (view source) (template editor protected)
Module:Navbox/configuration (view source) (template editor protected)
Module:Navbox/styles.css (view source) (template editor protected)
Module:Pagetype (view source) (protected)
Module:Pagetype/config (view source) (protected)
Module:Pagetype/disambiguation (view source) (protected)
Module:Pagetype/setindex (view source) (protected)
Module:Pagetype/softredirect (view source) (protected)
Module:SDcat (view source) (protected)
Module:Side box (view source) (template editor protected)
Module:Side box/styles.css (view source) (template editor protected)
Module:String (view source) (protected)
Module:Unsubst (view source) (protected)
Module:Webarchive (view source) (template editor protected)
Module:Webarchive/data (view source) (template editor protected)
Module:Wikitext Parsing (view source) (protected)
Module:Yesno (view source) (protected)

Return to Deductible.

Retrieved from "https://en.wikipedia.org/wiki/Deductible"