Finding Your Auto Insurance Deductible: A Quick Guide

Finding out your deductible for auto insurance is a straightforward process. Your car insurance deductible is the amount you pay out of pocket towards repairs or a claim before your insurance provider covers the rest. This information can be found on your proof of insurance card, declarations page, and policy documents. If you can't find it there, you can always contact your insurance company to ask them directly. It's important to know your deductible amount, as it will influence how much you pay for your policy and how much you'll need to pay in the event of an accident.

Where to find your deductible amount

Your car insurance deductible is listed on your proof of insurance card, which you should be able to find in your wallet or glove compartment. It will also be listed on the declarations page of your policy document, which contains other important information about your coverage, including your rates, payment frequency, and details about what's covered. If you can't find it on any of your documents, you can always call your insurance company to ask them.

Your deductible is a critical piece of your car insurance coverage, so you should always know what it is. It's the amount you pay "out of pocket" before your insurance covers the rest. Collision, comprehensive, uninsured motorist, and personal injury protection coverages all typically have a car insurance deductible. You usually have a choice between a low and high deductible. A low deductible means a higher insurance rate, whereas a high deductible means a lower insurance rate.

How car insurance deductibles work

A car insurance deductible is the amount you pay out of pocket towards a claim before your insurance coverage kicks in. In other words, it is the amount you must pay for repairs or replacement after an accident. For example, if you have a $500 deductible and $3000 in damage from a covered accident, your insurer will pay $2500, and you will be responsible for the remaining $500.

You can usually find your deductible on the declarations page of your policy document. It clearly states any deductibles you are expected to pay for each component of your coverage. Your proof of insurance card, which usually contains a brief summary of your coverage, is another place to look for your deductible information.

There are two types of deductibles: a flat rate or a percentage of the total amount of insurance on your policy. Deductibles typically range from $100 to $2000, with $500 being the most common amount chosen by drivers. You can choose between a low and high deductible, and this will affect your insurance rate. A low deductible means a higher insurance rate, while a high deductible means a lower insurance rate.

There are several types of auto coverage that include deductibles:

• Collision coverage: This applies to vehicle damage from colliding with something, such as another automobile or a utility pole.
• Comprehensive coverage: This covers damage caused by events other than a collision, such as severe weather, theft, or vandalism.
• Personal injury protection: Also known as "no-fault" insurance, this covers medical expenses for the policyholder and anyone else in the vehicle during an accident.
• Underinsured/uninsured motorist coverage: This applies if you are in an accident caused by a driver who doesn't have enough insurance or no insurance at all.

Liability insurance, which covers injuries and property damage in accidents for which you are at fault, does not carry a deductible.

Choosing a deductible amount

Choosing a car insurance deductible amount is a balancing act between how much you can afford to pay upfront and how much you can afford to pay in insurance premiums. A higher deductible will lower your insurance premium, but you'll have to pay more out of pocket if you file a claim. On the other hand, a lower deductible will increase your insurance premium, but you'll pay less if you need to file a claim.

• Value of Your Car: If your car is not worth much, it's generally better to opt for a lower deductible. This is because the insurance company will only pay up to the actual cash value of your vehicle if it's totaled in an accident. So, with a high deductible, you might end up paying more for repairs than what you would get from the insurance company.
• Your Savings: Evaluate how much you can comfortably afford to pay for repairs after an accident. If paying a high deductible would be a financial burden, it's better to choose a lower deductible, even if it means slightly higher insurance premiums.
• Cost Difference: Compare quotes from different insurance companies and see how different deductible amounts affect your rates. Calculate your total costs by considering both the insurance premiums and the potential out-of-pocket expenses in case of an accident.
• Likelihood of Filing a Claim: Consider your driving history and risk factors. If you have a history of accidents or engage in high-risk driving behaviours, you may be more likely to file a claim. In this case, a lower deductible might be a better choice to avoid a large bill after an accident.
• Tolerance for Risk: Choosing a high deductible is a gamble that you won't have an accident. If you opt for a high deductible, you're betting that you won't need to file a claim. Ask yourself if you're comfortable taking on that risk.

Remember, there is no one-size-fits-all answer, and the right deductible amount depends on your financial situation and preferences. The most common deductible amount is $500, but car insurance deductibles typically range from $100 to $2,500, giving you a wide range of options to choose from.

When to pay a car insurance deductible

A car insurance deductible is the amount of money you pay out of pocket when you make a claim. The amount is typically between $100 and $2,500, and you usually pay a deductible every time you file a claim. It's important to note that deductibles are paid on a per-claim basis, so if you have multiple claims, you will need to pay the deductible for each one.

There are a few factors that determine whether you need to pay a deductible. The first is the type of claim you're filing. If you're filing a claim under your collision or comprehensive coverage, you will typically need to pay a deductible. However, if you're filing a liability or medical payments claim, you usually don't need to pay a deductible.

The second factor is who was at fault in the accident. If another driver was at fault, their liability coverage should cover your injuries and vehicle damage, and you shouldn't have to pay anything. However, if there is a dispute over fault, or the other driver is uninsured, you can file a collision claim with your insurer and pay the deductible upfront. If your insurer can recover the deductible from the other driver's insurance company, they will reimburse you for the amount you paid.

It's also worth noting that there are some instances where you don't have to pay a deductible at all. For example, if you have comprehensive coverage and need to repair windshield glass damage, your insurance company may waive the deductible. Additionally, if you have liability claims filed against you, you don't need to worry about paying a deductible since liability coverage doesn't deal with deductibles.

When choosing a deductible amount, it's important to consider how much you can afford to pay out of pocket for repairs. A higher deductible will result in a lower insurance premium, while a lower deductible will lead to a higher premium. Ultimately, the decision comes down to what you're comfortable with and your financial situation.

When you don't have to pay a deductible

There are certain scenarios where you won't be required to pay a deductible. These are important to be aware of, as they can help you save money and navigate the claims process more effectively. Here are some key instances when you don't need to pay a deductible:

• Another driver is at fault: If another driver is responsible for the accident, their insurance company will typically cover the cost of repairs or damages. Your insurer may pursue reimbursement from the other driver's insurance company, which includes your deductible amount. However, this depends on whether your insurer can obtain reimbursement for the full cost of the damages.
• Liability claims against you: If another driver files a claim against your liability insurance, you are generally exempt from paying a deductible. Liability coverage does not involve deductibles, so you won't have any out-of-pocket expenses in such cases. Nonetheless, ensure you have sufficient liability coverage, as you may not be fully covered if the damages exceed your policy limits.
• Glass repairs or replacements: In many states, insurance providers offer free repairs or replacements for damaged glass, such as windshields. Since these are typically considered repairs rather than replacements, they fall outside the scope of your insurance policy, and you won't need to worry about deductibles.
• Disappearing deductible programs: Some insurance companies offer "disappearing deductible" programs, where your deductible amount decreases or is waived if you go a certain period without filing a claim or having a violation. These programs can significantly reduce or eliminate your deductible obligations over time.
• No damage to your car: If you cause an accident but your car remains undamaged, you won't be required to pay a deductible. In this case, your liability coverage will take care of the other driver's injuries and property damage without any deductible.

Frequently asked questions