Car insurance deductible

It deductible on car insurance is the amount that the insured must pay out of pocket in the event of damage or an insurance claim. It represents the portion of financial responsibility that lies with the insured before the insurer begins to reimburse damage costs. The deductible is usually agreed upon in advance between the insured and the insurance company and can vary depending on the type of coverage and the policy terms.

Insureds can choose to pay a higher deductible to reduce their premium, or a lower deductible for greater financial security in the event of a claim. In the event of a claim, the insured first pays the deductible amount, and the insurer reimburses the remaining costs up to the maximum amount covered.