Definition
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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