Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Varying car insurance deductibles can have a big impact on the premium you pay.
  • Locating the deductible is a matter of finding the declarations page.
  • Your insurance carrier should explain to you what your deductible is and how it impacts you.

When you are shopping for car insurance, something that is very easy to gloss over is what is known as the deductible.

You may think that you have all of the coverages you need, a premium that appears affordable and comes with a great value, but then you realize that you have a deductible that is simply way too high.

On the flip side of that, you may also have a deductible that is far too low, increasing your premium higher than you are comfortable paying. In either scenario, there is value in you actually knowing what your deductible is and how to find it.

Compare quotes for car insurance today by using our free tool above.

Understanding the Deductible

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The deductible that you have on your car insurance policy is going to be basically what you are responsible for out of pocket.

Let us say that you have a $500 deductible on your car insurance policy and you get in a car accident. The accident results in damage to your car that costs around $3,000.

That means that when your insurance company goes to pay you for the claim that you have filed, they are going to pay you less the deductible.

In the example that we have listed above, that means you are going to be getting back $2,500 for the claim you have filed and the accident.

There are benefits towards either increasing or decreasing your deductible.

When you increase your deductible, you are taking on more risk on your own because you will be responsible for paying a higher amount should an accident occur.

The benefit of this is that you will be paying a lower premium as a result because there is less risk to an insurance carrier.

When you have a deductible that is very low, you will have a higher premium, but pretty much any accident that you get into is going to be covered completely.

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Locating the Declarations Page

There is a page inside of your car insurance policy that is known as your declarations page. This is the page where all of your pertinent coverage information is going to be located. Think of this as a one-page summary of your actual car insurance policy.

On here what you are going to find is things like the following:

  • the effective period of your policy
  • the coverage limits that you have
  • type of coverage
  • your deductible

In the event that you are having trouble locating this page, do not hesitate to just reach out to your insurance carrier. A quick phone call to them or an e-mail should be able to help you get some direction as to where the declarations page is.

Another easy way to do this is in the event that you have an electronic copy of your car insurance policy, do a control find function on your computer, holding down control and find together.

Type in the word deductible and hit enter and it should bring you right to where it is.

Choose a Deductible You Can Afford

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It may sound like a great idea to make the deductible extremely high for the sake of lowering your premium. You are never going to get into a car accident, right?

That is the attitude of so many people and it is this reason as to why so many people get in trouble with their insurance. You want to have a deductible that, in the event, you do have an accident, you can afford pretty easily.

Think through your budget and your finances and do not just take the lower premium because you don’t think an accident can happen to you because it really can.

Car insurance companies are going to offer all different premium amounts in exchange for coverage types and varying deductibles.

This is why it is important for you as a consumer to do your homework and see what your options are in the market. Do price comparisons and work to try and find the right value, the proper mix of coverage, deductible, and the premium you are comfortable paying.

Try our comparison tool today and see how much you could save on car insurance!

References:

  1. http://www.21st.com/insurance-newsletters/2013/02/how-to-choose-your-deductible.htm
  2. http://www.21st.com/auto-insurance-information/understanding-car-insurance-deductibles.htm
  3. http://thelawdictionary.org/article/how-do-i-obtain-my-auto-insurance-declaration-pages/
  4. https://www.usaa.com/inet/wc/advice-auto-setautodeductible?akredirect=true
  5. http://www.military.com/money/insurance/what-to-know-about-home-and-auto-deductibles.html