A car insurance deductible is what you pay to repair your car if you have an accident or claim. That means if you have a $500 deductible and $1,500 in damage—you pay $500 and your insurer pays the rest.
When you purchase car insurance, one of the decisions you will need to make is on the amount of your deductible. But what is a deductible? But what is a deductible? A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest..
Your auto insurance deductible is the amount that you pay out of pocket for damages from a car accident before your insurance company chips in. Example 1: You get into a car accident and are found to be at fault, meaning you have to pay the damages.
Car insurance deductibles and claim costs If you raise your deductible from $250 to $1,000 and save $150 per year on your auto insurance premium, it could take you five years for the lower premiums to offset the extra deductible in the event that you have a claim of $750.
what is a car insurance deductible? A car insurance deductible is what you pay out of pocket before certain coverages can kick in. If you have comprehensive and collision coverages on your policy, for example, you'll need to select deductibles for each coverage. Because accidents happen, choosing a deductible you can comfortably afford is key to tailoring your car insurance to you.
Deductibles allow you to share the financial risk of loss with the insurance company. The more risk you're willing to take on through a higher deductible, the lower your premium. When you experience a loss that is covered by your insurance policy, the deductible is the amount you're responsible for before the insurance pays.