Tom's Blog
Understanding Auto Insurance Deductibles: What Drivers Should Know
Auto insurance can be confusing, especially when it comes to deductibles. At Paramount Insurance Agency, we believe that informed drivers make smarter insurance choices. Here’s a simple breakdown of how auto insurance deductibles work and how they impact your coverage and costs.
What Is an Auto Insurance Deductible?
A deductible is the amount you agree to pay out of pocket before your insurance company covers the rest of a claim. For example, if you have a $500 deductible and your repair costs are $2,000, you would pay the first $500, and your insurance would cover the remaining $1,500.
Types of Deductibles
- Collision Deductible – Applies when your vehicle is damaged in an accident, regardless of who is at fault.
- Comprehensive Deductible – Applies to damage from events other than collisions, like theft, vandalism, fire, or weather-related damage.
Choosing Your Deductible Amount
Deductibles typically range from $250 to $1,000 or more. Choosing a higher deductible can lower your monthly premium, while a lower deductible may result in higher monthly payments but less out-of-pocket cost after an accident. It’s about finding the balance that fits your financial comfort zone.
When Do You Pay a Deductible?
You only pay a deductible when you file a claim for damage covered under your policy. You won’t owe a deductible if another driver is at fault and their insurance is covering your damages.
How Paramount Insurance Agency Can Help
We help drivers across North Carolina choose auto insurance policies that make sense for their needs and budgets. Our team explains deductible options clearly so you feel confident about your coverage. Whether you’re looking to save on premiums or minimize out-of-pocket costs, we’re here to guide you every step of the way.
Need help reviewing your auto insurance policy?
Contact Paramount Insurance Agency today at 336-869-3335 for a personalized consultation.
