Auto Insurance

What is a deductable?

The deductible is the amount of money for which you are responsible following an accident. Insurance companies usually include a deductible to lower the cost to them and to provide a certain amount of accountability.

The higher the deductible, the more expensive an accident is to you. For example, if you were in an accident that caused $4,000 of damage to your car and had a $1,000 deductible, you would pay for the first $1,000 of damage and the insurance company would pay the remaining $3,000. If you had a $3,000 deductible, the insurance company would only pay for $1,000 of the $4,000 damage.

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