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  • Writer's pictureCharlotte Burr

Understanding Insurance Deductibles: How They Impact Your Coverage

Updated: Jun 14


A deductible is how much money you will have to pay out of pocket before your insurance covers the rest of a claim. A deductible also affects how much money your monthly insurance rate is.


  • If you would prefer to have a lower deductible, let's say $500, then your monthly rate for having insurance will be higher.

  • If you would prefer to have a higher deductible, around $2000, then your monthly rate for insurance will be much lower.

  • Think of your deductible as the amount you are willing to pay out of pocket to secure the monthly insurance rate you desire.


Important notice: When filing a claim you must first pay your deductible before your insurance provider pays out the rest of the cost. For example, if your car repair costs $2500 and you have a $500 deductible, you must first pay the $500 and then your insurance will pay the remaining $2000.

It is important to decide for yourself whether you want a higher or lower deductible depending on how safe you drive and how much you are willing to pay.


Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…


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