What a Deductible Is
A deductible is the amount you generally pay toward a covered collision or comprehensive claim before the insurer pays the remaining covered amount, subject to policy terms.
Higher vs. Lower Deductibles
Higher deductibles often reduce premiums because you retain more of the loss yourself. Lower deductibles may cost more but reduce the amount you need to pay when a covered claim occurs.
Choose an Amount You Could Actually Pay
Do not select a deductible based only on the premium savings. Consider whether you could comfortably pay that amount on short notice after an accident, theft, hail event, or other covered loss.
Compare the Savings
Ask for quotes at several deductible levels. If moving from a $500 deductible to $1,000 saves only a small amount each year, the additional out-of-pocket exposure may not be worthwhile for you.
Questions to Ask
- Does the same deductible apply to collision and comprehensive?
- How much does each deductible option change the premium?
- Are glass claims handled differently?
- Does my lender or lease agreement impose any deductible requirements?