How does a car insurance deductable work?

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If you have been looking for a car insurance policy, you have probably heard of deductible. What is a deductible, and how does it affect you?

Definition

A deductible is a specific amount you are required to pay for repairs to your car before insurance benefits are available. Deductibles are imposed on a per-accident basis.

How Much?

Car insurance deductibles can range from $0 to $1,000 or more. Selecting a higher deductible will save you money on insurance premiums, but make sure you could afford the deductible if an accident happens.

Why Deductibles?

Insurance companies like deductibles because they keep drivers from submitting small claims. The company incurs administrative expenses for each claim, so deductibles help keep insurance costs down.

Other Drivers

If the other driver was at fault in an accident, you will not typically be responsible for paying a deductible.

Totaled Vehicles

If your vehicle is rendered a total loss because of an accident, your deductible will be subtracted from the payment you receive from your insurance company.

Source:

Car Insurance Rates: Car Insurance Deductibles Explained

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How does a car insurance deductable work?

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