Loading page content
AUTO · INSURANCE 101
A plain-language walkthrough of what a deductible actually is, how it affects your premium, and how to choose the right one for you.
A deductible is the amount you pay out of pocket on a covered claim before your insurance starts paying. If you have a $500 deductible and $2,000 in damage, you pay the first $500 and your insurer covers the remaining $1,500, subject to your policy terms.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam quis nostrud exercitation ullamco laboris.
Say you're in an accident and the repair estimate comes back at $3,200. Here's roughly how the math plays out:
EXAMPLE
Repair cost: $3,200 · Your deductible: $500 · You pay: $500 · Carrier pays: $2,700
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, excepteur sint occaecat cupidatat non proident.
A higher deductible usually means a lower monthly premium, but more to pay if you ever file a claim. A lower deductible raises your premium but softens the hit when something happens. The right choice depends on:
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam eaque ipsa quae ab illo inventore veritatis.
$250
Higher premium, lowest out-of-pocket risk
$500
Balanced — the most common choice
$1,000
Lower premium, more out-of-pocket if you file
$2,000+
Lowest premium, highest risk if something happens
These are general patterns, not quotes — your actual premium depends on your carrier, your coverage, and your situation.
Occasional tips and reminders. No spam, unsubscribe anytime.
FAQ
Yes, generally once per claim, not per year.
Often yes, though timing and options depend on your carrier and policy. An agent can walk you through what is available.
A licensed New Jersey agent can walk you through it. Free to start.
Quotes are estimates and subject to carrier underwriting.