Deductible
Spanish: Deducible
The out-of-pocket amount the insured pays on a covered claim before the carrier pays the rest.
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Definition
Quick Answer
A deductible is the out-of-pocket amount you pay on a covered claim before your insurer pays the rest. Texas auto policies carry separate collision and comprehensive deductibles, usually $500 or $1,000 per claim. A higher deductible lowers your monthly premium; liability coverage carries no deductible. A-LA quotes Texas coverage from $28/mo.
Deductible refers to the out-of-pocket amount an insured must pay on a covered claim before the insurance carrier pays the remainder. Texas auto policies typically carry separate deductibles for collision and comprehensive coverage, commonly $500 or $1,000 per claim. Higher deductibles produce lower monthly premiums, and vice versa — raising a collision deductible from $500 to $1,000 often reduces premium by 10–15%. Liability coverage does not carry a deductible, because liability pays a third party rather than the insured. Deductibles apply per claim rather than per policy period, meaning two separate hail events in one year would require two separate comprehensive deductibles. Some carriers offer disappearing or diminishing deductibles that reduce with each claim-free year. Choosing a deductible should match the driver's ability to pay that amount out of pocket if a claim occurs tomorrow — a key factor many DFW drivers overlook.
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Real-World Examples
$3,200 hail repair on a comprehensive claim with a $500 deductible
North Texas hail is the most common comprehensive claim in DFW. You pay the body shop your $500 deductible and your carrier pays the remaining $2,700. If a second separate storm damages the car later that year, you owe the $500 comprehensive deductible again — deductibles reset per claim, not per policy year.
Choosing $500 vs $1,000 collision deductible on a financed vehicle
Say the $1,000 deductible saves you $12/month versus $500 — that's $144 a year. But after an at-fault crash you'd pay $500 more out of pocket. If you'd struggle to find that extra $500 in an emergency, the $144 yearly saving isn't worth it; keep the $500 deductible. Lenders on financed cars require collision and comprehensive, but you still pick the deductible.