{"id":320713,"date":"2025-11-07T17:32:34","date_gmt":"2025-11-07T22:32:34","guid":{"rendered":"https:\/\/www.reviews.com\/?p=113138"},"modified":"2025-11-07T17:32:34","modified_gmt":"2025-11-07T22:32:34","slug":"what-is-an-insurance-deductible","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/car\/what-is-an-insurance-deductible\/","title":{"rendered":"What’s an Insurance Deductible?"},"content":{"rendered":"\n

Car accidents happen, and if they happen to you, you’ll need to worry about your car insurance deductible. What is a car insurance deductible, exactly? It\u2019s the money you have to pay for damages before your insurance company starts to pay<\/a>. For auto insurance, deductibles usually apply to collision and comprehensive coverages (liability generally has no deductible). In 2025, consumer insurance references consistently note that $500 is the typical\/most common deductible, with $1,000 also widely chosen; standard choices are often $250, $500, and $1,000, with some carriers offering $100 on the low end and up to $2,000 on the high end. There is no government\u2011published national \u201caverage\u201d; sources describe common amounts rather than a precise mean. See Bankrate<\/a>, the Insurance Information Institute<\/a>, NerdWallet<\/a>, and The Zebra<\/a>. And while a lower deductible does sound great, it comes with a higher monthly premium for that privilege. What deductible is best for car insurance? We’ll go into that and more below. You can also review an insurer explainer on deductible basics from American Family Insurance here: the average car insurance deductible<\/a> being around $500.<\/p>\n\n\n\n

How Deductibles Affect Car Insurance Premiums<\/h2>\n\n\n\n

Let’s say you have an accident, and the damages total $3,000. Let’s also say that you have a car insurance policy with a $500 deductible. Who pays the deductible in this instance? If the accident is covered by your insurance, you’d be responsible for paying the first $500 of the costs, and your insurance company would pay for the remaining $2,500. Deductibles are generally applied per claim for collision\/comprehensive, not per year. See overviews from Bankrate<\/a> and the Insurance Information Institute<\/a>.<\/p>\n\n\n\n

The lower your deductible is, the less you have to pay before your insurance kicks in. But, as already mentioned, lower deductibles come with a higher monthly insurance premium. The reason is straightforward: when you choose a higher deductible, you retain more of each loss and remove smaller claims from the insurer\u2019s expected loss, which typically lowers the collision\/comprehensive portion of your premium; liability coverages usually have no deductible, so changing your deductible won\u2019t affect those premiums. Exact premium reductions vary by insurer, state, driver, and vehicle, so get quotes at multiple deductible levels to quantify your trade\u2011off (III<\/a>; NerdWallet<\/a>). For context on the out\u2011of\u2011pocket impact, industry trend reports show average repairable collision claims often around the low\u2011to\u2011mid $5,000s entering 2025, meaning the difference between a $500 and $1,000 deductible frequently changes your cost on a typical repair by about $500 (CCC Crash Course<\/a>; Mitchell ITR<\/a>).<\/p>\n\n\n\n

Types of Car Insurance Deductibles<\/h2>\n\n\n\n

Each component of your car insurance will have a deductible attached to it. It’s possible that your deductible for different components of your insurance may be different. The two most common areas you’ll want to know about are your car insurance comprehensive deductible and collision deductible. Many policies use the same amount (e.g., $500) for both, but you can usually choose them independently; liability coverages typically have no deductible (Bankrate<\/a>; III<\/a>). Some policies also offer a separate or $0 glass deductible option, distinct from your comprehensive deductible, where state rules allow (Progressive<\/a>).<\/p>\n\n\n\n

Collision Deductible<\/h3>\n\n\n\n

Your collision coverage is the component of your car insurance that kicks in when you have damage from a collision with another vehicle, property, or a single-car accident. The three most common deductibles you may see here are $0, $500, or $1,000. If you currently have a loan out on your car, the chances are high that you will be required to carry collision coverage. Other drivers who want to be covered in case they have an unexpected accident or who might not have the savings to cover a big repair bill might benefit from collision coverage.  In today\u2019s market, typical deductible options offered include $250, $500, and $1,000, with some carriers offering $100 on the low end and $1,500\u2013$2,000 in certain states. Consumer sources identify $500 as the most common choice, with $1,000 also popular (Bankrate<\/a>; NerdWallet<\/a>; The Zebra<\/a>). Shoppers facing higher auto premiums have increasingly considered moving to $1,000 deductibles to lower costs, a trend noted in recent industry shopping studies (J.D. Power 2025<\/a>). Also note that average repairable collision claims often land around ~$5,000, so your chosen deductible directly shapes your likely out-of-pocket if you have a claim (CCC Crash Course<\/a>; Mitchell ITR<\/a>).<\/p>\n\n\n\n

Comprehensive Deductible<\/h3>\n\n\n\n

Your comprehensive coverage is the component of your car insurance that kicks in when something happens to your car that isn’t an accident, like theft, vandalism, fire, civil disturbance, or falling objects. Generally, this is good for people who might live in higher-risk areas of any of these incidents. Many insurers also offer glass-specific terms: in some states, windshield chip repairs are handled with a waived deductible, and in select jurisdictions or via optional endorsements, full windshield replacement may have a separate or $0 deductible (Progressive<\/a>; GEICO<\/a>). Keep in mind that modern ADAS equipment embedded in windshields often requires calibration, contributing to higher comprehensive claim costs in recent years (CCC Crash Course<\/a>).<\/p>\n\n\n\n

The Most Common Car Insurance Deductibles<\/h2>\n\n\n\n
Deductible<\/strong><\/td><\/tr>
$100<\/td><\/tr>
$250<\/td><\/tr>
$500<\/td><\/tr>
$1,000<\/td><\/tr>
$2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

How to Choose a Deductible<\/h2>\n\n\n\n

Figuring out how to choose a car insurance deductible is an important decision. Should you get a $500 or $1,000 deductible? Is a $250 deductible worth the higher premium? Knowing how to choose the right car insurance deductible can help you save money while still protecting your ride. In 2025, $500 remains a common baseline with $250\u2013$1,000 the typical range; due to ongoing premium pressure (the CPI for motor vehicle insurance rose notably through 2024), many shoppers are evaluating higher deductibles (e.g., $1,000) to bring premiums down (BLS CPI<\/a>; J.D. Power 2024<\/a>). Always compare quotes across multiple deductible levels and weigh premium savings against your expected claim frequency (III<\/a>; NerdWallet<\/a>).<\/p>\n\n\n\n