Auto Insurance Deductibles – What You Need To Know

One of the most important decisions you’ll make when buying auto insurance from a Texas insurer, is the deductible level to choose. A deductible is an amount you must pay out-of-pocket before your insurance policy kicks in to cover your claim, and it can have a significant impact on your premiums. Here’s everything you need to know about automobile insurance deductible fees.

What is Car Insurance Deductible?

A deductible is the amount of money you must pay before your automobile insurance policy begins to cover expenses. For example, if you have a $1,000 deductible and you get into an accident and damage your car, you will be responsible for paying the first $1,000 of damages yourself. Your car’s insurance will cover the rest of the damage amount.

Different Types of Car Insurance Deductible?

There are two types of auto insurance deductibles: fixed and variable. You always pay the same amount out-of-pocket for each claim with a fixed deductible. With a variable deductible, your out-of-pocket costs can vary depending on the size of the claim.

How Does a Car Insurance Deductible Impact My Premiums?

A higher deductible generally means lower premiums since you’re taking on more risk yourself. However, it’s essential to make sure that you have enough money saved up to cover your deductible in an accident. Otherwise, you could be left with a hefty bill to pay.

How do I Figure Out The Appropriate Deductible for My Auto Insurance Policy?

When buying automobile insurance, you can select a deductible amount that is appropriate for your budget by asking for an auto insurance quote. Then, consider how much you’ll typically have on hand for emergencies. If there’s a possibility that your deductible won’t be enough to pay out, go for the lower one.

Car insurance charges depend on numerous factors, including the make and model. The more costly your car is, the more it will cost to insure. If you drive a new vehicle, you may consider increasing your deductible to decrease your premiums.

When do You Have to Pay Your Car Insurance Deductible?

You pay your deductible any time you claim under a policy with a deductible, as long as the damage is covered and the costs exceed your deductible amount. Your insurance company will refund you for the damages minus your deductible if your claim is approved.

You don’t typically have to pay your insurance a deposit or make a payment. Instead, they subtract the deductible from the damages paid out for each claim. So, for example, if you have a $1,000 deductible and the injuries from an accident are $4,000, your insurance company will pay out $3,000.

Is it Possible to Use Your Car Insurance Deductible Limit More than Once?

There is no limit to the number of times you can use your car insurance deductible as long as you continue to pay your premiums. However, if you decide to increase your deductible amount, you may have to wait a certain period before the change.

Is There a Deductible if I Strike a Vehicle?

If you cause an accident but do not harm your vehicle, you will not be responsible for a deductible. In this scenario, your insurance company will cover the damages to the other vehicle. However, if you damage your car, you will be responsible for the deductible amount.

Other Situations with No Deductible

Your auto insurance deductible does not cover the following situations:

1. Another person files a claim against your liability insurance coverage

There is no deductible on a liability claim, which means you don’t have to pay anything out of pocket for an accident in which your insurance covers the repairs and injuries you affect to another person up to your policy’s limits.

2. Your car is stolen or vandalized

There is no deductible for a stolen or vandalized car since it’s not considered an accident. However, your insurance company will cover the costs of repairs or replacement.

3. Your car is damaged in a natural disaster

If your car is damaged due to a natural disaster like a tornado or hurricane, your deductible will not apply. Your insurance company will typically cover the costs of repairs.


Auto insurance deductibles are a way for you to take on more of the risk yourself and, in turn, receive lower premiums. However, it’s essential to make sure that you have enough money saved up to cover your deductible in case of an accident. So when buying auto insurance from a Texas insurance provider serving in major cities of Texas such as El Paso, Laredo, McAllen, and Corpus Christi, ensure you select a deductible amount appropriate for your budget and driving habits. 

Generally, you will have to pay your deductible whenever you make a claim. However, keep in mind that there are some situations in which your deductible will not apply. Also, ask your insurance company about any specific scenarios in which your deductible would not be applicable.

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