Car insurance meaning deductible

A car insurance deductible is the amount of money you agree to pay out of your own pocket for car repairs or replacement after an accident. If you are involved in an accident causing $5,000 of damage to your vehicle, and you have a $500 deductible, the insurance company should pay $4,500 of the claim while you are responsible for $500.

That means you pay nothing out of pocket for an accident claim in which your insurer pays for the damages and/or injuries you caused to another person, up to your policy's limits. You elected for no deductible In some states, you'll have the option to select a $0 deductible on your policy's comprehensive coverage.

Your car insurance deductible is usually a set amount, say $500. If the insurance adjuster determines your claim amount is $6,000, and you have a $500 deductible, you will receive a claim payment of $5,500. However, based on your deductible, not every car accident warrants a claim.