Understanding Car Insurance Deductibles
What is a car insurance deductible?
A car insurance coverage deductible is the money you pay toward an accident or a claim. Certain coverages require you to pay a deductible out of pocket. There may be deductibles for coverages such as comprehensive, collision, uninsured motorist property damage, and personal injury protection.
How does an auto insurance deductible work?
Let's say you have collision coverage, with a $250 deductible, and are involved in a car accident that causes $2,000 of damage to your vehicle. If you file a covered claim with your insurance company, then you will pay the $250 deductible and your insurance carrier will pay the remaining $1,750 towards your car repairs.
With some exceptions, you will pay a deductible for each loss you file under your auto insurance policy.
How do I choose the deductible amount?
In most situations, you may choose the deductible amount for each coverage. You should consider several factors when making this decision.
First, consider the dollar amount you want to be responsible for paying. In most situations, when you file a claim under a coverage that requires a deductible you will pay the deductible - so choose an amount you're comfortable paying out of pocket. You should consider choosing a deductible that you're able to pay.
Second, the deductible amount will impact your car insurance premium. If you choose a low deductible amount, then you'll likely be paying a higher insurance premium for the coverage. On the other hand, if you choose a high deductible amount, then you'll likely pay a lower insurance premium. You should compare and calculate how your deductible impacts your overall policy premium. Check out our coverage calculator to see what options look good to you.
Can a car insurance deductible be waived?
In most situations, for coverages with a deductible, a deductible will apply - but there are some circumstances in which the deductible may be waived. For example, if you have comprehensive coverage and make a claim to repair windshield glass damage, then your deductible may be waived. Check with your insurance representative to verify what deductibles apply. In some states, you may purchase additional auto insurance coverage that will waive your deductible in some scenarios. Check your state reference page for more information.
Now that you know more about how deductibles work, get a free car insurance quote from GEICO today.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Coverage is subject to the terms, limits and conditions of your policy contract.