What is a car insurance deductible?
An auto insurance deductible is what you pay "out of pocket" on a claim before your insurance covers the rest. Collision, comprehensive, uninsured motorist, and personal injury protection coverages all typically have a car insurance deductible. You typically have a choice between a low and high deductible. A low deductible means a higher car insurance rate, whereas a high deductible means a lower rate.
Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
How do car insurance deductibles work?
Deductibles for car insurance require you to pay the deductible amount every time you file a claim. Once you pay the car deductible amount, your insurer will cover the remaining cost to repair or replace your vehicle. Auto insurance policies don't require you meet an annual deductible. The two most common car insurance coverages that include auto insurance deductibles are comprehensive and collision coverages.
Example:You have a $500 deductible and $3,000 in damage from hitting a deer. With comprehensive insurance coverage, your insurer will pay $2,500 to repair your car, and you'll be responsible for the remaining $500.
Example:You have a $300 deductible and $1,200 in damage from colliding with a light pole. With collision insurance coverage, your insurer will pay $900 to repair your car, and you'll be responsible for the remaining $300.
Here's a quick overview of how deductibles work and how they influence your insurance rate:
Some states require you to pay an auto insurance deductible for other coverages, including personal injury protection and uninsured/underinsured motorist property damage coverages. Auto insurance deductibles work the same for all coverage types.
Is it better to have a high or low car insurance deductible?
A high deductible is better if you want to save on your car insurance rate, while a low deductible is better if you want more protection from future out-of-pocket costs. Car insurance deductibles typically range from $100 to $2000. The most common deductible our drivers choose is $500. Here’s a simple way of understanding it:
Higher deductible = Lower car insurance rate, higher out-of-pocket costs
Lower deductible = Higher car insurance rate, lower out-of-pocket costs
Let's compare a $500 deductible to a $1,000 deductible. If you choose a $500 deductible, your rate will be higher than if you choose a $1,000 deductible. If you were to file a claim with a $500 deductible, however, your out-of-pocket cost would be $500 less than if you filed a claim with a $1,000 deductible.
The best deductible amount is an amount that you're comfortable paying in the event of a claim. It's also important to consider your driving history and the likelihood of filing a claim.
Pro tip:
If you live in a state where cracked windshields are common, you may want to choose a low car insurance deductible for windshield replacements. Depending on your state and insurer, you may have no deductible on glass replacement coverage or have the option to select a $0 deductible, which will increase your rate.
How will your car insurance deductible impact your rate?
Generally, the higher your deductible, the lower your rate. For example, if you raise your deductible from $100 to $250, your rate should decrease.
When do you pay a car insurance deductible?
You pay your car insurance deductible when your claim is approved, and your insurance company issues your payout. The payment is completed when the deductible amount is subtracted from the payout amount. If you have a claim approved for $5,000, and your deductible is $250, your insurance company will issue you a check for $4,750.
You typically pay your car insurance deductible after your car is fixed. Depending on your insurer and the situation, your insurer may pay the repair shop directly, minus your deductible — if that's the case, you'll need to pay the repair shop your deductible. Or, you may have already paid for the repair and file a claim to get reimbursed — in this case, your car insurance will cut you a check for the covered repairs, minus your deductible.
Choose your deductible and get coverage from Progressive
New Progressive customers
Call 1-866-749-7436 or get an auto insurance quote online, and we'll help you figure out the best deductible for each coverage.
Current Progressive customers
Log in to your policy or call us at 1-866-749-7436 and make changes to your existing deductibles, if necessary.
Quote car insurance online or give us a call
Learn more about car insurance policies.
