Car Insurance Deductibles
Understanding Auto Insurance Deductibles & How They Work
Your auto insurance provides peace of mind that your insurance company will step in and help you recover if an unexpected event occurs. But it’s important to understand that, even though you’ll be getting financial support from your insurer, you’ll still be paying money out of pocket — otherwise known as a deductible.
What Is a Car Insurance Deductible?A car insurance deductible is the amount you pay out of pocket before your insurance company covers any financial loss from a car accident. You have the ability to choose your deductible amount along with your coverage limits, and are expected to pay up to the deductible amount before your insurance company will cover any costs.
What Deductible Should I Choose?Typically, people choose an auto insurance collision deductible of $250, $500 or $1,000. Comprehensive deductibles are usually $100, $250 and $500 — although a $0 deductible is available. American Family Insurance offers auto insurance collision deductibles and comprehensive deductibles in these amounts.
Want to learn more about how deductibles work or what deductible amount is right for you? Your American Family agent is happy to help.
Deductibles With American Family Insurance
American Family Insurance makes it easy to set up your car insurance policy and choose a deductible:
- Get covered. First step — you need car insurance! Get an auto insurance quote and purchase your coverage online, by contacting your agent or by phone at 1-800-MYAMFAM (1-800-692-6326).
- Have your Information ready. When quoting auto insurance, you’ll need the names, addresses, dates of birth, numbers of accidents/violations for all drivers in your household and current insurance policies.
- Choose your deductible. You can select a higher or lower deductible when setting up your car insurance. The deductible that’s best for you depends on your individual financial needs, so choose a deductible that works best for your budget.
Car Insurance Deductible FAQs
Choosing Low Deductibles vs High Deductibles
Lower Auto Insurance Deductibles
Higher Auto Insurance Deductibles
Pay less out of pocket in the event you file a claim
Pay more out of pocket if you have a claim
Pay more in premiums over a longer period of time
Premiums will be lower each month
Pay more each month for premiums
May need to save emergency money in case of a claim to cover higher deductible
Be able to afford paying more up front in monthly premiums.
Auto Deductibles: Example Scenarios
Tips for Auto Deductibles
Choose an Affordable Deductible AmountDeciding whether to opt for a low or high deductible is unique to you. Can you afford to pay more for your premium but pay less in the event you have to file a claim? Or are you okay with paying more out of pocket when filing a claim? That’s your call, but an agent is always happy to give you their expert advice and help you choose an auto insurance deductible you’re comfortable with.
Start an Emergency FundIf you do decide to go with a high deductible, it would be in your best interest to tuck away some savings each month in case you end up having to pay for damages out of pocket. It’s all about being proactive about your protection!
At the end of the day, part of choosing a deductible for your car insurance policy is ensuring it’s designed to fit what you’re comfortable with. Talk with your American Family Insurance agent about finding the right range, and don’t be afraid to ask questions! We’re here to help make the process easier, affordable and personalized just for you.