How Do Auto Insurance Deductibles Work?
When shopping for affordable personal car insurance, you may have seen the term "deductible", but not understood what it meant. At Senate Select Insurance, we can help when it comes to understanding car insurance deductibles—from how they work to choosing the right one for your unique needs.
What is a deductible payment?
Deductible definition - it's the money you agree to pay out-of-pocket before the insurance company pays toward a claim resulting from a loss or damage.
For example, if your deductible is $500, and repairs from an auto accident are $900, you’ll be responsible for paying the first $500.
The car insurance company pays the remaining $400.
Choosing the right car insurance deductible
The deductible you choose will depend on several factors. Since a higher deductible can lower your monthly insurance premium, you may opt for a higher deductible to save money. Nevertheless, if you live in a congested area where fender-benders occur frequently, a lower deductible could be less expensive in the long run. While average car insurance deductibles may vary from state to state or even between insurance providers, typical deductibles range between $250 and $1,500 per accident.
What is vanishing deductible feature?
Some insurance carriers offer a vanishing deductible feature that lowers your deductible every year you do not have a claim. This feature varies between insurance carriers so give a Senate Select Insurance Agent a call to find out if this is available.
Learn more
To find out which deductible is best for you, contact a Senate Select Insurance agent or call 1-800-622-9333.
We'll help you find a policy that provides the coverage you need and a deductible you can afford.
The provided information were obtained from sources believed to be reliable and is intended for informational purposes only. Senate Select Insurance and its affiliates assume no liability in connection with providing it or your use of it. Your circumstances may not warrant or require some or all of the safety suggestions, and there may be additional available safety procedures that are not referenced on this webpage.