What are car insurance deductibles?
Car insurance deductibles play a huge role in determining your insurance rates. The deductible defines how much money you agree to pay out of pocket for certain covered incidents. Most car insurance companies offer policies with deductibles ranging from $250 to $1,000 and usually the higher the car insurance deductible you choose the lower your car insurance premiums will be.
Compare Car Insurance Companies
Secured with SHA-256 Encryption
|
Written by
Jessica Sautter
|
|
Reviewed by
Chris Harrigan
|
UPDATED: Mar 31, 2021
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
- Your car insurance deductible plays a huge role in the amount of your monthly premium
- Car insurance deductibles apply to almost all components of car insurance policies
- Almost all car insurance companies offer policies using the same deductible formula
Deductibles play a large factor in auto insurance, however, understating what a car insurance deductible is will be critical to deciding whether or not to secure a policy with a low deductible or high one.
Want to contact car insurance companies and talk about car insurance deductibles?
Enter your zip code above to find LOCAL car insurance companies
Table of Contents
What is a car insurance deductible?
Choosing a car insurance deductible will have a direct impact on your auto insurance premiums. The deducible defines how much money you agree to pay out of pocket for certain covered incidents.
For example, let’s assume you have a $25,000 comprehensive car insurance policy with a $500 deductible.
In the event of an accident, you will be responsible for paying the first $500 of damage (under uninsured events).
Once the $500 is paid, then the car insurance company will pay the remaining cost, up to the limits of your policy coverage.
If the total damage is $5,000 you will pay $500 and the car insurance company will pay $4,500.
Car insurance deductibles apply to almost all components of car insurance policies including:
- Comprehensive
- Collision
- GAP insurance coverage
Sometimes in the event of a total loss, it’s possible to have a policy with a feature where the deductible is waived.
Most car insurance companies offer policies with deductibles ranging from $250 to $1,000 and usually the higher car insurance deductible you choose the lower your car insurance premiums will be.
Compare Car Insurance Companies
Compare quotes from the top car insurance companies and save
Secured with SHA-256 Encryption
Compare quotes from the top car insurance companies and save
Secured with SHA-256 Encryption
Should I always pick the highest car insurance deductible?
Remember that a car insurance deductible is an out-of-pocket cost and drivers should only choose a deductible which they can afford in the event of an accident.
Car accidents are usually unforeseen events and you should have the ability to pay this deductible.
Should you fail to pay the deductible, it’s possible your car will not be released by the repair shop and/or repairs fully completed until the bill is paid in full.
What car insurance companies offer the best car insurance deductibles?
Almost all car insurance companies offer policies using the same deductible formula.
Some companies will waive a deductible in the event a car is determined to be a total loss or if you use an auto repair shop on their approved list.
This will vary from one car insurance company to the next so make sure to ask any potential providers about the unique ways they offer customers to avoid paying a deductible in the case of an accident.
Ready to compare car insurance quotes or want to discuss car insurance deductible with a licensed agent.
Find car insurance companies now! Enter your zip code below to get started!