{"id":1863,"date":"2025-11-17T08:29:07","date_gmt":"2025-11-17T08:29:07","guid":{"rendered":"https:\/\/www.way.com\/ask\/?p=1863"},"modified":"2025-11-17T08:29:07","modified_gmt":"2025-11-17T08:29:07","slug":"what-is-deductible-in-car-insurance","status":"publish","type":"post","link":"https:\/\/www.way.com\/ask\/what-is-deductible-in-car-insurance\/","title":{"rendered":"What is deductible in car insurance?\u00a0\u00a0"},"content":{"rendered":"<p><span data-contrast=\"auto\">When you purchase car insurance, the insurer takes care of the financial loss due to an accident or damage. The amount of financial loss covered under the insurance policy is called a coverage limit. The carriers usually offer the maximum coverage limit you are eligible for. The policyholders can choose whether to keep this coverage limit or lower it by adding deductibles. While choosing a deductible is an added financial liability for you, it will also lower your car insurance premiums. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">How does a deductible work?\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Imagine you choose a deductible of $500 and the claim amount is $700, then you need to pay the full $500, and the insurer will pay the rest of the claim amount, which is $200.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Unlike the coverage limits, the deductible in car insurance won\u2019t be lowered from the previous claim. Hence, you need to pay the chosen deductible amount each time you make a claim.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">When the deductible is higher than the claim\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">If the claim is an amount equal to or less than the deductible, the insurer won\u2019t make any payment. The policyholder has to make the payment at their own expense.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">How does deductibility affect car insurance rates?\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">The deductibles can lower your car insurance rates. If you think your car insurance rates are above your head, you can balance the rates by adding deductibles to your insurance policy. The higher the deductibles are, the lower the insurance rates get. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">The coverages to which the deductible is applicable\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">The deductible is applicable to almost all car insurance coverage except for the liability part. As liability coverage is state-mandatory, you don\u2019t have an option to add a deductible for this coverage. All others, including comprehensive and collision, have a deductible option.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you purchase car insurance, the insurer takes care of the financial loss due to an accident or damage. The amount of financial loss covered under the insurance policy is called a coverage limit. The carriers usually offer the maximum coverage limit you are eligible for. The policyholders can choose whether to keep this coverage&hellip; <a class=\"more-link\" href=\"https:\/\/www.way.com\/ask\/what-is-deductible-in-car-insurance\/\">Continue reading <span class=\"screen-reader-text\">What is deductible in car insurance?\u00a0\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1863","post","type-post","status-publish","format-standard","hentry","category-auto-insurance","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is deductible in car insurance?\u00a0\u00a0 - ask<\/title>\n<meta name=\"description\" content=\"Knowing what deductible is and how it works can be helpful to lower your car insurance rates. 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