The higher your deductible, the less you'll pay. You have to pay a car insurance deductible when you file a claim with your own auto insurance company after most types of incidents. You can avoid paying your car insurance deductible by asking your mechanic to exempt you from the deductible in exchange for your business. You can opt for a higher car insurance deductible because you're betting against having an accident, but if you've had accidents in the past and drive often on higher-traffic roads, you're more likely to file a claim and pay a deductible.
Deductibles never apply to auto liability insurance, only to other types of coverage, such as collision insurance and comprehensive coverage. A car insurance deductible is the amount of money you pay out of pocket for a claim before your insurance company pays the rest. A car insurance deductible is what you pay “out of pocket” on a claim before your insurance covers the rest. Collision insurance pays for the repair or replacement of a car damaged in an accident, and the driver must pay their collision deductible before their insurance company covers the remaining costs.
Car insurance deductibles work as a prerequisite for filing certain types of claims, since they ensure that policyholders don't file frivolous claims by making them pay a portion of the cost up front. Because your options are limited when you can't afford your car insurance deductible, it's important to choose a deductible that you can afford when you buy a policy. You have to pay your car insurance deductible if you cause an accident that damages your vehicle and file a claim with your collision insurance. If you can't afford your car insurance deductible, you won't be able to file a car insurance claim to have your insurance company pay for vehicle damage or medical bills.
When a disaster occurs in your home or you have a car accident, the deductible is subtracted or deducted from what your insurance pays to cover a claim. Otherwise, if you file a car insurance claim with a type of coverage that has a deductible, you'll have to pay it. In this case, you'll first have to pay your deductible, but your insurance company will request full reimbursement from the at-fault driver's insurer through a subrogation claim. To choose a car insurance deductible, you'll need to determine how much you're willing to pay out of pocket in the event of an accident and how likely you are to have to file a claim.
After you pay the amount of the car's deductible, your insurer will cover the remaining cost to repair or replace your vehicle.