There are many choices you need to make when it comes to choosing the right car insurance. When it comes to customizing your policy, one of the biggest decisions is what deductible amount you will choose.
Your deductible is the amount of money you will have to pay toward fixing or repairing your car before your insurance kicks in. Deductibles typically only apply to collision and comprehensive coverage. (There may be other cases where you could have a deductible, so ask your agent about all coverages with deductibles.)
Here’s an example scenario: Suppose you’re involved in an accident, and the auto repair shop estimates you’ll need $2,000. If you have a $500 deductible, you’ll be responsible for paying $500, and then your insurance will take care of the remaining $1,500.
Most people choose a deductible between $100 and $1,000, although they could possibly be as low as $0 or as high as $10,000, depending on the coverage and applicable state laws. Your agent can help explain your options so you can pick an amount that’s comfortable for you.
If you’re deemed at fault for an accident, you typically pay the deductible under your own policy. If another person damages your vehicle and they are deemed at fault, their insurance would typically pay for your damage in its entirety. In that case, you wouldn’t be responsible for paying the deductible under your own policy.
Generally, the higher your deductible, the lower your insurance premium (which is just a fancy word for price). The lower your deductible, the more you will typically pay for your insurance premium.
Not sure what to pick? No worries – your local agent is here to help.
Your agent can offer you multiple quotes with different deductibles. They can also explain how changing your deductible can affect your annual premium—or show you the cost savings between different options over multiple years. Ultimately, they want you to fully understand your options and feel confident about your decision.
It’s all about your budget—and your comfort level with risk. Here are some things to consider about deductibles when you talk with your agent:
See also: Find Out the One Insurance Add-On Every New Car Needs
One final tip: Whatever deductible you choose, it’s smart to have that amount of cash on hand in your emergency fund. That way, you’re financially prepared if you have to file a claim.
Our agents know life is not one size fits all. With the right coverage, flexible options, and available discounts, your agent is there to help you get auto insurance that suits your life and your budget.
Are you not sure what your current deductible is? If you’re an existing customer, you can ask your agent or log in to your online account to view your policy details.
Contact an ERIE agent today to discuss your deductible options, understand how different deductibles affect your premium, and get an auto quote.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.
The insurance products and services described in this blog are not offered in all states. ERIE life insurance and annuity products are not available in New York. ERIE Medicare supplement products are not available in the District of Columbia or New York. ERIE long term care products are not available in the District of Columbia and New York.
Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.
Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.
