Deductible

For some types of auto and homeowner insurance coverage, you’re asked to choose a deductible. A deductible is the amount of damages you agree to pay for if you file an auto insurance claim.

Though choosing a higher deductible can substantially lower your insurance premium, if you file an insurance claim, you’ll have to pay the full, pre-established, amount of the deductible out of your own pocket in order to receive payment from your insurance company.