An auto insurance deductible is a fixed amount that a driver agrees to pay out of his or her own pocket for the repair or replacement of a car in case of an accident. Let’s try to understand this with an example; consider that you got into an accident and the repair amount of your car is $9000.

Before filing a claim to your insurance company; you will have to pay a deductible amount. Let’s say your deductible amount is $1500. Now before filing a claim to the company you will have to pay $1500 to the repair shop.

How Car Insurance Deductibles Works?

Let us understand this with another example. Consider your car got collided with another car and there are minor damages to your car. Now you got a bill of $200 for the repair of your car and your deductible amount is $500.

Here your insurance company will not come into the picture as your claim amount is less than the deductible amount.