What is a car insurance deductible?
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.
How does a car insurance deductible work?
There’s no such thing as meeting your annual deductible like there is for health insurance. Instead you have to pay your deductible with most claims, no matter how many you have per year or the lifetime of your policy. Also, your insurer only pays for damages above your deductible. For example: If you have $300 in damages and a $500 deductible, you’d pay all of the repair costs. Also if you total your car, your insurer will give you a payment for its current value, minus your deductible.
Comprehensive and collision are the two most common coverages that include deductibles. You may also see a deductible for personal injury protection or uninsured/underinsured motorist property damage in some states. Deductibles work exactly the same for all coverages.
Explore more on comprehensive and collision.
When you have to pay your deductible
Your deductible only applies to damages to your car rather than to someone else’s. The general rule is[…]
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