Unlike health insurance plans where consumers plan covers all types of medical care, car insurance policies are actually broken up into multiple types of coverage. Liability insurance, which includes bodily injury and property damage coverage, does not typically have any deductibles attached.

How does deductible work for car insurance?

A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest.. For example, if you’re in an accident that causes $3,000 worth of damage to your car and your deductible is $500, you will only have to pay $500 toward the repair.

Do you have to pay deductible on car insurance?

You are not responsible for a deductible unless you have comprehensive and collision coverage. Since you only have liability, the damages to your car will not be covered which means there is no deductible.

What kind of insurance has a deductible?

Auto comprehensive and collision coverage usually have deductibles because they insure against your own losses. Liability insurance covers other people’s losses when you’re at fault and normally doesn’t carry a deductible. Auto policies have two basic types of liability coverage.

What’s the deductible for comprehensive car insurance?

But comprehensive and collision insurance nearly always require a deductible, usually of $500 or $1,000. Comprehensive coverage covers damage to your vehicle that happens when it’s not being driven, like damage from fire, falling objects, vandalism and extreme weather, as well as collision with an animal.

How does the collision deductible work on car insurance?

This deductible is usually the highest deductible you will have with your car insurance policy. If your car is hit by another vehicle shown to be at fault and the owner is adequately insured, his insurance will pay for the damage to your vehicle. In that case, you would not pay a collision deductible.