What is a car insurance deductible, and how does it work?

Fausto Bucheli Jr. for CheapInsurance.com

What is a car insurance deductible, and how does it work?

If you have ever shopped for auto insurance, you have likely come across the word “deductible” in your policy options. For many drivers, it is one of those terms that they nod along to without truly understanding until they have to file a claim.

Car insurance comes with its own vocabulary, and the deductible is one of the most important concepts to understand because it directly affects both your monthly premium and your out-of-pocket costs when an accident happens.

CheapInsurance.com explains what a car insurance deductible is, how it works, the different types you might encounter, when you have to pay it, and how to decide on the right amount for your situation.

What Is an Auto Insur