How does car insurance deductibles work?
A car insurance deductible is the amount of money you agree to pay out of pocket before your insurance company covers the rest of the repair costs. For example, if you have a $500 deductible and your car gets damaged in an accident that costs $2,000 to fix, you would pay $500 and the insurance company would pay the remaining $1,500. Choosing a higher deductible can lower your monthly insurance premiums, but it means you’ll have to pay more if you need to file a claim. Make sure you understand your deductible amount and how it affects your coverage.
