How does a car insurance deductible work?
A deductible is the part of a repair bill you pay yourself. It applies to collision and comprehensive coverage, and not to liability.
- A deductible is the part of a repair bill you pay yourself, and it applies to the coverages that fix your own car.
- On a 4,200 dollar repair with a 500 dollar deductible, you pay 500 and your policy pays 3,700.
- The deductible applies to each claim, not to each year, so two separate incidents mean two deductibles.
A deductible is the part of a repair bill you pay yourself before your insurance company pays the rest. It applies to the coverages that fix your own car, collision and comprehensive. It does not apply to liability, the coverage that pays for damage you cause to other people.
How a car insurance deductible works, with numbers
Collision covers your car when it hits something. Comprehensive covers the other ways a car gets damaged, such as hail, theft or fire. Both carry a deductible.
Say your car needs 4,200 dollars of repairs after a crash you caused. With a 500 dollar deductible, you pay 500 and your policy pays 3,700. With a 1,000 dollar deductible, you pay 1,000 and your policy pays 3,200.
| Your deductible | You pay | Your policy pays |
|---|---|---|
| 250 dollars | 250 dollars | 3,950 dollars |
| 500 dollars | 500 dollars | 3,700 dollars |
| 1,000 dollars | 1,000 dollars | 3,200 dollars |
The deductible applies per claim, not per year. A claim is a request to your insurance company to pay for a loss. Two separate incidents mean two deductibles, even in the same year.
How to choose your deductible
Raising the deductible lowers what the collision and comprehensive part of your policy costs. That drop is real, but it shrinks each time you raise the number again. Going from 1,000 to 2,000 returns less than people expect, and it doubles what you would owe after a crash.
The test is whether you could write that check tomorrow, without a credit card and without asking anyone for help. If you could, a higher deductible is a trade you can live with. If you could not, you have bought a discount you cannot use.
What lenders allow
If you are still paying the car off, the lender usually caps your deductible, commonly at 500 or 1,000 dollars. A higher deductible means more of a repair bill that might never get paid, and the lender's money is in that car. Read your loan terms before you raise it. See what a lender requires on a financed car.
Separate deductibles
Collision and comprehensive can carry different deductibles, and often should. Many South Texas drivers keep a lower deductible on comprehensive, because hail claims are the likeliest claim they will ever file. Then they take a higher deductible on collision to hold the cost down.
Glass
Many Texas policies handle a windshield chip with no deductible, and some offer a separate low deductible for glass. If you drive the highway behind gravel trucks, ask how your policy treats glass.
When you do not pay the deductible
If another driver is at fault, meaning the crash was their doing, and their company accepts that, their policy pays for your repairs and you owe nothing. If you use your own collision coverage first to get the car fixed sooner, your company usually goes after the other company for the money. When it recovers, your deductible comes back to you. See how the claim process works.
We will price both
Look up your deductibles today, then ask us to quote the policy at two levels so you can see what the higher number changes. Call our McAllen office at (956) 687 3334, or use the ZIP form on this page. Se habla español.
Common follow-up questions
Do I pay the deductible to the insurance company?
No. You usually pay it to the repair shop, and your insurance company pays the shop the rest of the bill.
Is there a deductible on liability coverage?
No. Liability pays for the other party's damage, and you do not pay a deductible on it.
Can I change my deductible mid term?
Usually yes, and the new number applies from the day the change takes effect. It will not apply to a claim that already happened.
Need a quote?
Enter your ZIP code to get started. Ten questions, about two minutes.
Or call (956) 687 3334, Monday to Friday, 9 AM to 6 PM.
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Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.