Auto Insurance: What Does Your Deductible Cover   

The deductible is one of the most essential details to understand in your auto insurance policy. It directly affects how much you’ll pay out of pocket after a claim and how your coverage applies in different situations.

How Does a Car Insurance Deductible Work?

A deductible is the amount you agree to pay before your insurance coverage kicks in. You choose the deductible when you purchase your policy, which usually applies per claim.

What Does My Auto Insurance Deductible Cover?

Common types of car insurance that typically have deductibles include the following:

• Uninsured/underinsured motorist coverage may cover damage after an accident with an at-fault driver who lacks insurance.

• Comprehensive coverage may cover your vehicle if it is damaged by something other than a crash, such as theft, vandalism, severe weather or hitting an animal.

• Collision coverage may cover your vehicle’s repair or replacement costs after a crash.

While many people choose the same deductible for collision and comprehensive coverage, it’s possible to select different amounts for each type. Liability coverage, which may pay for property damage or injuries to others, does not have a deductible.

What is a Diminishing Deductible?

A diminishing deductible rewards you for safe driving. Every year you go without a claim, your deductible decreases, usually by a set dollar amount. Some insurers cap the reduction, but over time, it can lower what you owe out of pocket after a claim. This feature can be added to your policy for an additional cost.

Reliable Insurance Agency Near You

Don’t let accidents or unexpected repairs catch you off guard. Secure reliable auto insurance from Plemons Insurance Agency, proudly serving drivers in , . Contact us today to explore coverage options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.