Deductible

A deductible is the amount you're responsible for on a covered claim before your insurance starts paying its share. It's set when you choose your policy, and it typically applies separately to each claim, not once a year.

If you have a $500 deductible and $2,000 in damage, you pay the first $500 and your insurer covers the rest, subject to your policy terms.

A higher deductible usually means a lower monthly cost, but more to pay at claim time. A lower deductible does the opposite — so the right choice depends on what you'd rather pay for.

Think about how much you could comfortably cover out of pocket today, not just what looks cheapest on a monthly bill. A licensed agent can walk you through how different deductible levels would actually affect your rate.