Understanding Car Insurance Deductibles

Understanding Car Insurance Deductibles

When you purchase car insurance, one of the decisions you will need to make is on the amount of your deductible. But what is a deductible?

A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest.. For example, if you’re in an accident that causes $3,000 worth of damage to your car and your deductible is $500, you will only have to pay $500 toward the repair. The insurance company pays the remaining $2,500.

For many people, increasing the amount of their deductible is also a great way to save money. That’s because when you choose a higher car insurance deductible amount,, it could lower the amount you pay on your insurance premium.