what is a deductible in car insurance

A deductible in car insurance is the amount you agree to pay out-of-pocket toward repair or replacement costs before your insurance company pays the rest on a covered claim. For example, if damage costs 1,5001{,}5001,500 and your deductible is 500500500, you pay 500500500 and the insurer typically covers the remaining 1,0001{,}0001,000, up to your policy limits.

Quick Scoop

• A car insurance deductible is a fixed dollar amount written into your policy that applies when you file certain types of claims, like collision or comprehensive.

• You choose this amount when you buy or adjust your policy, and common options are around 250250250, 500500500, or 1,0001{,}0001,000, though they vary by insurer and coverage.

• The higher your deductible, the lower your premium usually is, because you are agreeing to take on more of the cost if something happens; the opposite is true for a lower deductible.

• A deductible generally applies per accident or per claim, not once per year, meaning each separate covered incident can trigger the deductible again.

In simple terms: the deductible is the part of the loss you pay first, and then your insurer pays the remaining covered amount, subject to your coverage limits and policy terms.

Bottom note: Information gathered from public forums or data available on the internet and portrayed here.