A deductible is the amount subtracted from an insurance payout that you are responsible for. Triple-I’s example: with a $500 collision deductible and $2,000 of damage, you pay $500 and the insurer pays $1,500. Generally you can lower your premium by choosing a higher deductible, but you must be able to pay it if you claim. These pages describe U.S. insurance in general terms; rules, required coverage and prices differ by state and insurer, so check your state insurance department and your policy. We give no rates, because none of the sources we read give current ones.
How does a deductible work?
- It applies to your own car. Collision and comprehensive are generally sold with their own deductibles; the glass portion of comprehensive may be offered without one. There is no deductible for liability coverage.
- You pay it even if you are at fault, and the insurer pays the rest. If you are not at fault, Triple-I says your insurer may recover its payment from the other driver’s insurer and, if it succeeds, you are also reimbursed the deductible.
How much can a higher deductible save?
Triple-I’s example is that raising a deductible from $200 to $500 could reduce collision and comprehensive costs by 15 to 30 percent, and going to $1,000 could save 40 percent or more. That is from an undated brochure and is an example only; ask your insurer for quotes at different deductibles. See nine ways to lower your car insurance cost.
How do you choose?
- Check you can afford it. Triple-I says to be sure you have enough money set aside to pay it if you have a claim.
- Get quotes at two or three deductible levels with everything else identical; see how to compare car insurance quotes.
- Consider the car’s value. On an older car, Triple-I suggests collision or comprehensive may not be cost effective if the car is worth less than 10 times the premium.
- Check the rules for your loan. Lenders usually require collision and comprehensive; see auto insurance basics.
Frequently asked questions
What is a good deductible?
There is no single answer: it depends on what you can afford to pay on a claim and how much premium you want to save.
Do I pay a deductible if the accident is not my fault?
Possibly at first: Triple-I says your insurer may recover the amount from the other driver’s insurer and then reimburse the deductible.
Sources: Triple-I, “Auto insurance jargon buster”, “What is covered by a basic auto insurance policy?” and “Nine ways to lower your auto insurance costs” (iii.org, read 13 November 2026; no publication date shown).