How Auto Insurance Deductibles Work

Educational information — not insurance advice.

A deductible is what you pay out of pocket on a covered claim before your insurance pays the rest.

Higher deductible, lower premium

Choosing a higher deductible usually lowers your monthly premium — but you pay more if you have a claim.

Lower deductible, higher premium

A lower deductible costs more monthly but less at claim time.

How to choose

Pick a deductible you could comfortably pay tomorrow if you had an accident.

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