How do car insurance deductibles work?Unlike health insurance, there are no annual deductibles to meet when it comes to auto insurance. You're responsible for your policy's stated deductible every time you file a claim. After you pay the car deductible amount, your insurer will cover the remaining cost to repair or replace your vehicle. Show
Example: You have a $500 deductible and $3,000 in damage from a covered accident. Your insurer will pay $2,500 to repair your car, and you'll be responsible for the remaining $500. Comprehensive and collision are the two most common car insurance coverages that include deductibles. You may also have a deductible for personal injury protection or uninsured/underinsured motorist property damage in some states. Auto insurance deductibles work exactly the same for all coverage types. Here's a quick overview of how deductibles work and how they influence your insurance rate: Show video transcript How do deductibles work for car insurance?In the simplest of definitions, an auto insurance deductible is what you pay out of pocket on a claim. Copyright [2015 - 2021] Progressive Casualty Ins. Co. All Rights Reserved. How do car insurance deductibles work? In the simplest of definitions, an auto insurance deductible is what you pay out of pocket on a claim. As you can see in the example, after you pay your deductible amount your insurer may cover the remaining cost to repair or replace your vehicle. This assumes the damage is covered and the claim for the damage is approved. Here's something to keep in mind when choosing a deductible. Higher deductible You pay more out of pocket, but rate is lower With a higher deductible you'll pay more out of pocket, but your car insurance rate will be lower. Lower deductible Your rate is higher, but you pay less out of pocket With a lower deductible your rate will be higher, but you'll pay less out of pocket. Coverages that could have a car insurance deductible include: comprehensive, collision, uninsured and under-insured motorist property damage, and personal injury protection if it applies in your state. Comprehensive, Collision, Uninsured/under-insured motorist property damage, Personal injury protection Some insurers even offer a disappearing deductible program. It's what it sounds like. If you go a set amount of time without a claim or violation your deductible amount will decrease or be waived. Progressive offers disappearing deductibles for car, RV, motorcycle, and boat policies. Contact Progressive today for help choosing your deductible amount. Let us help you choose a deductible amount! We offer insurance by phone, online, and through independent agents. Prices vary based on how you buy. What if my car insurance deductible costs more than my repairs?If your auto insurance deductible is higher than the cost of the damage to your vehicle, you'll pay for the entire cost out of pocket as the insurer only covers damages above your deductible amount. In these cases, you may not need to file a claim. Example: Your car repairs only amount to $800 and your deductible is $1,000. You'll pay for all the repairs out of pocket because the cost is lower than your deductible amount. High vs. low car insurance deductiblesIn most cases, you can choose whether you want to pay a higher or lower deductible for car insurance. Car insurance deductible amounts typically range from $100 to $2,000. The most common deductible our drivers choose is $500, but there's no wrong choice. Ultimately, it comes down to what you prefer: Higher deductible = Lower car insurance rate and higher out-of-pocket costs Lower deductible = Higher car insurance rate and lower out-of-pocket costs Choose an auto deductible amount you're comfortable with, and make sure you can afford to pay your deductible out of pocket in the event of a claim. It's also important to consider your driving history and the likelihood of filing a claim. You may opt for a higher car insurance deductible because you're betting against having an accident, but if you've had accidents in the past and often drive on busier roads, you may be more likely to file a claim and pay a deductible. Pro tip: If you live in a state where cracked windshields are common, you may want to choose a low car insurance deductible for windshield replacements. Depending on your state and insurer, you may have no deductible on glass replacement coverage or have the option to select a $0 deductible, which will increase your rate. How will your car insurance deductible impact your rate?Based on paying $420 for collision coverage on a six-month policy, the chart below shows how adjusting a deductible can change the coverage cost. Increasing your deductible from $100 to $250 provides the greatest jump in savings, while going from $1,000 to $2,000 offers the lowest amount of savings.
Premium amounts are hypothetical. The change in premium based on changes in deductible amounts reflect Progressive's direct auto Ohio rate filing as of August 2019. View this table as an image. When do you pay a car insurance deductible?You pay your deductible any time you file a claim under a coverage that carries a deductible, assuming the damage is covered and costs more than your deductible amount. If your claim is approved, your deductible will typically be applied when your insurance company issues your payout. You generally don't have to write a check or make a payment to your insurer. They simply subtract your deductible amount from your claim's approved payout. Suppose you have a claim approved for $5,000, and your deductible is $250. In that case, your insurance company will issue you a check for $4,750.  Do I pay a deductible if I hit a car?If you cause an accident but don't damage your car, you won't pay a deductible. In this scenario, your liability coverage would pay for the other driver's injuries and property damage, which doesn't carry a deductible. However, if your vehicle is damaged in the accident, and you decide to file a collision claim, then you would pay your collision deductible. Do I pay a car insurance deductible if I'm not at fault?If the other driver is officially deemed at fault, their insurance company can pay for your repairs if you file them, and you won't have to pay your deductible. If you have collision coverage, you can also choose to go through your own insurer, who will seek reimbursement (including your deductible) from the other driver's insurance company. In situations where fault is shared, you may end up paying all or part of your auto insurance deductible. Keep in mind, if an uninsured or underinsured driver hits you, a deductible may apply to your uninsured/underinsured motorist property damage coverage in certain states. Other situations with no deductibleAn auto insurance deductible won't apply to you in the following scenarios:
Choose your deductible and get coverage from ProgressiveNew Progressive customersCall 1-866-749-7436 or get an auto insurance quote online, and we'll help you figure out the best deductible for each coverage. Current Progressive customersLog in to your policy or call us at 1-866-749-7436 and make changes to your existing deductibles, if necessary. Please note: The above is meant as general information to help you understand the different aspects of insurance. Read our editorial standards for Answers content. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page. What deductible is best for car insurance?Typically, insurance agents recommend that your comprehensive deductible be between $100 and $500. Comprehensive claims tend to be filed for less damage than collisions, so having a lower deductible is often logical.
What does it mean to have $1000 deductible?A health insurance deductible is the amount you pay before your insurance kicks in. For example, if you have a $1000 deductible, and you need a $1000 MRI procedure and a $2000 surgery, you will pay $1000 out-of-pocket for the MRI, and then $0 for the surgery.
What is a $500 deductible?With a $500 deductible, you would only pay $500 towards the repairs, while your insurance company would pay the rest.
How does a deductible work?The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself. A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible.
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What is a deductible in car insurance
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