What is a Deductible?

The Oxford Dictionary describes your deductible as “a specified amount of money that the insured must pay before an insurance company will cover the remainder of a claim”. For example, if your auto collision results in an estimate of $2500 and your deductible is $500, then your insurance will only cover $2000 of that repair.

It’s important for you to shop around and negotiate when choosing a policy to best position yourself in case of an accident. Deductibles are inversely proportional to your monthly rate. If you choose a low deductible then your monthly payment will tend to be higher. As your rate lowers, your deductible will likely rise.

You may feel like a full coverage policy with a low deductible can be way too expensive but consider that the average collision repair in El Paso is running around anywhere from $1500 with minor damage up to over $10,000 for a severe collision, plus out of pocket rental costs of around $800. So choose your policy carefully.