Glossary

Deductible

The amount you pay toward a covered loss before your insurer pays the rest, set per claim for coverages like collision and comprehensive.

Also called: car insurance deductible, collision deductible, comprehensive deductible

A deductible is the portion of a covered loss you pay yourself before insurance pays. In auto insurance it applies mainly to the coverages for your own car, collision coverage and comprehensive coverage, and sometimes to personal injury protection or uninsured motorist property damage. Liability coverage, which pays other people, normally has no deductible.

It works per claim. With a $1,000 collision deductible and $4,500 of damage, the insurer pays $3,500 and you pay $1,000, usually directly to the repair shop. If the damage is $800, you pay it all and filing makes little sense. If the car is totaled, the deductible is subtracted from the settlement. When another driver is at fault, their liability insurer should pay without any deductible, and if your insurer pays first, it may recover your deductible through subrogation.

A higher deductible lowers your premium because you take on more of the small losses. The right level is one you could pay tomorrow without hardship; the deductible break-even calculator shows how long the premium savings take to cover the extra out-of-pocket risk. Some policies offer zero-deductible glass coverage, deductible waivers or a disappearing deductible that shrinks over claim-free years.

Last reviewed October 4, 2026

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Related terms

Collision coverage Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible. Comprehensive coverage Pays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal. Disappearing deductible An optional program that lowers your collision or comprehensive deductible by a set amount for each claim-free period, sometimes to zero. Collision deductible waiver An option that pays or waives your collision deductible when an identified uninsured driver is at fault for damaging your car. Premium The amount you pay for an insurance policy over its term, built from the insurer's rate, your rating factors, coverage choices and discounts. Full glass coverage An option that pays for windshield and window repair or replacement with no deductible, usually added to comprehensive coverage.

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Related insurers

Safeway Insurance Family-owned Westmont, Illinois auto insurer founded in 1959 that sells low-cost policies through agents in 12 states, including to drivers new to the U.S.

Related tools

Deductible break-even calculator Compare two deductibles: what the higher one saves each year, what it costs when you claim, and how many claim-free years it takes to break even. Car insurance quote comparison worksheet Line up quotes from several insurers, annualize the prices and flag where coverage differs, so you compare like with like before you switch. Should I file a claim? calculator Compare what an insurance claim would pay with what a possible premium increase could cost over the following years, using your own numbers.