How Auto Insurance Deductibles Work (And How to Choose One)

A deductible is the amount you pay out of pocket before insurance covers the rest. Choosing the wrong deductible can cost you thousands over time.

Common Deductible Options

• $250 – Higher premiums, lower risk

• $500 – Balanced option

• $1,000 – Lower premiums, higher risk

How to Choose the Right Deductible

Choose a deductible you can comfortably afford in an emergency — not just the cheapest monthly payment.