When Do You Pay an Auto Insurance Deductible?

When the Deductible Applies

You pay a deductible when you file a claim that exceeds the coverage limit set by your policy and the loss is covered by that policy. The deductible is the amount you agree to absorb before the insurer pays the rest.

Types of Claims That Trigger Deductibles

• Collision coverage for damages from a collision with another vehicle or object.
• Comprehensive coverage for non‑collision events such as theft, vandalism, or weather damage.

Claims for bodily injury, property damage to other drivers, or uninsured motorist coverage usually do not involve a deductible.

How the Deductible Is Calculated

Deductibles can be a fixed dollar amount or a percentage of the claim. For example, a $500 deductible means you pay the first $500 of a covered loss; a 10% deductible means you pay 10% of the claim up to a maximum.

Paying the Deductible: Timing and Methods

When you file a claim, the insurer will inform you of the deductible amount. You typically pay it directly to the insurer or the repair shop, depending on the claim process. Some policies allow you to pay a deductible later, but the insurer will not cover the loss until payment is received.

Impact on Your Premiums

Choosing a higher deductible often lowers your monthly premium, but it increases out‑of‑pocket costs for each claim. Conversely, a lower deductible raises the premium but reduces the cost when a claim is filed.