Categories: Auto Insurance
What is a Deductable?
Some kinds of coverage have deductibles. A deductible is the amount you must pay before the insurance company pays anything on a claim.
You usually pay a lower premium if you choose a higher deductible.
Example: Let’s say that your Comprehensive coverage has a $500 deductible. If a storm causes $1,500 of damage to your car, you must pay the first $500. Then your Comprehensive coverage pays the rest—$1,000.