How does a car insurance deductible work?
How to pick a number that lowers your premium without creating a bill you cannot pay after a crash.
A deductible is what you pay out of pocket before the insurance company pays the rest. It applies to your own vehicle coverages, collision and comprehensive, and not to the liability that pays for damage you cause to others.
How it plays out
Your car needs 4,200 dollars of repairs after an accident you caused. With a 500 dollar deductible, you pay 500 and the insurer pays 3,700. With a 1,000 dollar deductible, you pay 1,000 and they pay 3,200.
The deductible applies per claim, not per year. Two separate incidents mean two deductibles.
Choosing the number
The premium savings from raising a deductible are real but they are not unlimited. Going from 500 to 1,000 typically saves a meaningful percentage of the collision and comprehensive portion of your premium. Going from 1,000 to 2,000 saves less than people expect and doubles your exposure.
The test is simple. Can you write that check tomorrow, without a credit card, without asking anyone? If yes, the higher deductible is a good trade. If not, you have bought a discount you cannot use.
Separate deductibles
Collision and comprehensive can carry different deductibles, and often should. Many South Texas drivers keep a lower comprehensive deductible because hail claims are the likeliest claim they will ever file, and take a higher collision deductible to save money.
Glass
Many Texas policies handle windshield chips with no deductible, and some offer a separate low glass deductible. If your commute involves highway driving behind gravel trucks, ask about it.
When you do not pay the deductible
If another driver is at fault and their insurance accepts liability, their policy pays for your repairs and you owe nothing. If you go through your own collision coverage first to get the car fixed faster, your insurer usually pursues the other carrier and returns your deductible when they recover.
We will price both
Ask us to quote your policy at two deductible levels so you can see exactly what the higher number buys you. Call (956) 687-3334. Se habla español.
Common follow-up questions
Do I pay the deductible to the insurance company?
No. You usually pay it to the repair shop, and the insurer pays the rest of the bill directly.
Is there a deductible on liability coverage?
No. Liability pays for the other party's damage with no deductible from you.
Can I change my deductible mid-term?
Usually yes, effective going forward. It will not apply to a claim that already happened.
Want this looked at properly?
We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. No cost to talk it through.
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