What Is A Car Insurance Deductible

Comprehensive deductible Comprehensive coverage pays for damages caused by theft, flood, vandalism, earthquakes, etc. The deductible is the amount you pay out of pocket, and a higher deductible usually means lower monthly payments.

Disappearing Deductible. Definition. A formula deductible that decreases as the amount of loss increases and disappears entirely to provide full coverage when the loss reaches a specified amount. Disappearing deductibles were once commonly used in property insurance policies.

Choosing Your Collision Insurance Deductible. Your collision deductible is the amount of money you will pay out-of-pocket in the event that a collision damages your car.

How a deductible can work. If you're found at fault in a car accident and you have comprehensive and collision coverage, the first portion of your vehicle repairs are covered by your deductible — everything above that amount (and below the actual cash value of your car) is picked up by your insurer.