How Car Insurance Deductibles Work

Your share of a covered loss

For coverage using a deductible, you generally pay that amount before the insurer's payment applies.

Liability works differently

Auto liability generally does not work like collision and comprehensive deductibles. Check the actual policy.

Higher deductible, different trade-off

Raising a physical-damage deductible can reduce premium while increasing your responsibility after a covered loss.

Choose an affordable amount

Do not choose a deductible so high that a covered repair would become financially impractical.

Compare consistently

A $500-deductible quote and a $1,000-deductible quote are not apples-to-apples.

Review periodically

Changes in savings, vehicle value or coverage needs can justify reconsidering deductibles at renewal.