What is a Deductible? – Alset Insurance

A deductible is the amount you pay out of pocket before your insurance coverage kicks in for a covered claim.

How Deductibles Work

Example: Collision Claim with $500 Deductible
- Repair cost: $3,000
- Your deductible: $500
- Insurance pays: $2,500

Types of Deductibles

Collision Deductible
- Applies to accident-related vehicle damage
- You choose your amount when buying coverage

Comprehensive Deductible
- Applies to non-collision claims (theft, weather, vandalism)
- Often can be set separately from collision

Common Deductible Amounts
- $100
- $250
- $500
- $1,000
- $2,000

Choosing Your Deductible

Lower Deductible	Higher Deductible
Higher premium	Lower premium
Less out-of-pocket at claim	More out-of-pocket at claim
Better for frequent claimers	Better for infrequent claimers

Factors to Consider

Emergency Savings: Can you afford the deductible if needed?
Driving History: More accidents = consider lower deductible
Vehicle Value: Higher value = more potential for costly repairs
Premium Impact: Compare quotes with different deductibles

When Deductibles Apply

Deductibles apply to:
- ✓ Collision claims (your fault or not)
- ✓ Comprehensive claims
- ✓ Sometimes uninsured motorist property damage

Deductibles typically don't apply to:
- ✗ Liability claims (damage you cause to others)
- ✗ Medical payments
- ✗ Rental reimbursement

Deductible Recovery

If someone else is at fault, we may recover your deductible through subrogation (pursuing their insurance). If successful, you'll receive your deductible back.