🚗 Do I have to pay my deductible if I wasn't at fault?

If you file with your own insurance, yes, you pay your deductible upfront regardless of fault. However, your insurer will pursue the at-fault driver's insurance (a process called subrogation) to recover costs, including your deductible. If successful, you get it back. Alternatively, you can file directly with the at-fault driver's insurance and avoid paying a deductible, but this is often a slower process.

🧮 Should I file a claim if damage is less than my deductible?

No. If damage costs $400 and your deductible is $500, your insurance won't pay anything (you'd be responsible for the full $400 anyway). Filing a claim just creates a record that could affect future rates. Pay out of pocket for repairs under your deductible.

💰 Should I file a claim if damage is slightly above my deductible?

It depends, but often no. For example, if your deductible is $500 and repairs cost $600, you'd only receive $100 from your insurer, but filing a claim creates a record that could raise your rates. The long-term savings from keeping a clean claims history usually outweigh the short-term payout.

📅 Does the deductible apply to each incident or per year?

Per incident. Unlike health insurance, car insurance deductibles don't "reset" annually. You pay your deductible each time you file a claim. If you have two separate accidents in one year, you'd pay your deductible twice.

🔄 Can I change my deductible anytime?

Typically yes. Contact your insurer to adjust your deductible at any time. Changes usually take effect immediately or at your next billing cycle.

🛡️ Does liability insurance have a deductible?

No. Liability insurance covers damage and injuries you cause to others, and there's no deductible because you're not receiving a payout. Deductibles only apply to coverages that pay for your own losses, like collision, comprehensive, gap insurance, PIP and uninsured motorist property damage coverage.

Updated December 12, 2025

How Car Insurance Deductibles Work

How Car Insurance Deductibles Work

Your car insurance deductible is one of the most important parts of your policy. It directly affects both your monthly premium and out-of-pocket costs when you file a claim.

Jerry has helped 1,154,175 drivers compare car insurance quotes with different deductibles in the last year. Our full coverage quotes typically range from $185 to $416 per month. Here’s how deductibles work and how to pick the right amount for you.

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What is a car insurance deductible?

A car insurance deductible is the amount you pay out of pocket before your insurance kicks in to cover the rest of a claim.

The most common coverage types with deductibles are comprehensive and collision coverage, which are part of full coverage car insurance.

The deductible amount you choose will usually have a large impact on your car insurance costs.

	Best for	Cost impact
Higher deductible	Safe drivers who have emergency savings.	Lower premium.
Lower Deductible	Drivers with tight budgets or who are more likely to be in an accident.	Higher premium.

Higher deductible

Best for

Safe drivers who have emergency savings.

Cost impact

Lower premium.

Lower Deductible

Best for

Drivers with tight budgets or who are more likely to be in an accident.

Cost impact

Higher premium.

Key takeaway: Your deductible is the amount you pay first on a claim before your insurer covers the rest. The higher your deductible, the lower your car insurance costs tend to be.

When you’ll pay a deductible

You pay your deductible each time you file a claim for a coverage that has a deductible.

You’ll pay your deductible for:

Collision claims for damage to your car after an accident with another car, regardless of fault.
Comprehensive claims for damage to your car from theft, vandalism, weather or hitting an animal.

You don't pay a deductible for:

Liability insurance claims if you injure someone or damage their property.
Claims that are filed with an at-fault driver’s insurance.
Certain circumstances where your deductible is waived by your insurance company.

How a deductible is paid

You typically won’t pay your insurance company directly. Instead, the deductible is either:

Subtracted from your claim payout: For example, if your car’s repairs cost $3,000 and your deductible is $500, the insurer sends you $2,500.
Paid directly to the repair shop: You pay $500 to the shop, insurance pays them the rest.

Key takeaway: You only pay a deductible for claims on your own car, not for liability claims or when filing against another driver’s insurance. Your deductible is usually subtracted from your payout or paid directly to the mechanic.

Compare deductible options with Jerry

Finding the right deductible means comparing how different amounts affect your premium, and that’s where Jerry comes in.

Jerry compares quotes from over 50 insurers in minutes, so you can see exactly how choosing a $500 vs. $1,000 deductible impacts your rate. Whether you want a lower deductible for peace of mind or a higher one to cut costs, Jerry helps you find the right fit for your financial situation.

Skip the hassle. Jerry finds competitive quotes in minutes.

How to choose the right deductible amount

There’s no universal “right” deductible amount, because it depends on your financial situation, driving habits and risk tolerance.

Ask yourself these questions when deciding on what your deductible should be.

1️⃣ Can you afford to pay it tomorrow?
If you had to come up with $1,000 tomorrow for an unexpected claim, could you do it without financial strain? If not, then the deductible is too high.

2️⃣ What is your driving history?
Drivers with clean records who drive fewer miles, live in a safe area and have lots of driving experience may be more comfortable taking on a higher deductible, because they believe they’re less likely to need to file a claim.

Drivers with a history of accidents or long commute times through heavy-trafficked areas may be more likely to file a claim and should consider a lower deductible.

3️⃣ What is your car worth?
Choose a deductible amount relative to your car’s market value. For example, If your car is worth $50,000, a $1,000 deductible is reasonable. Comparatively, if your car is worth $5,000, a $1,000 deductible may be too high.

In general, it’s not worth having comprehensive and collision coverage on cars worth less than $5,000, so you may not need a deductible at all.

Your deductible choice isn’t permanent. Consider changing your car insurance deductible when your finances or driving habits change, your car ages or is replaced, or when your policy renews.

Jerry recommends: Pick a deductible you could comfortably pay tomorrow if you had an unexpected claim. If coming up with $1,000 would cause financial strain, go lower. The premium savings likely aren’t worth the financial stress.

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faq

🚗 Do I have to pay my deductible if I wasn’t at fault?

If you file with your own insurance, yes, you pay your deductible upfront regardless of fault. However, your insurer will pursue the at-fault driver’s insurance (a process called subrogation) to recover costs, including your deductible. If successful, you get it back. Alternatively, you can file directly with the at-fault driver’s insurance and avoid paying a deductible, but this is often a slower process.
🧮 Should I file a claim if damage is less than my deductible?

No. If damage costs $400 and your deductible is $500, your insurance won’t pay anything (you’d be responsible for the full $400 anyway). Filing a claim just creates a record that could affect future rates. Pay out of pocket for repairs under your deductible.
💰 Should I file a claim if damage is slightly above my deductible?

It depends, but often no. For example, if your deductible is $500 and repairs cost $600, you’d only receive $100 from your insurer, but filing a claim creates a record that could raise your rates. The long-term savings from keeping a clean claims history usually outweigh the short-term payout.
📅 Does the deductible apply to each incident or per year?

Per incident. Unlike health insurance, car insurance deductibles don’t “reset” annually. You pay your deductible each time you file a claim. If you have two separate accidents in one year, you’d pay your deductible twice.
🔄 Can I change my deductible anytime?

Typically yes. Contact your insurer to adjust your deductible at any time. Changes usually take effect immediately or at your next billing cycle.
🛡️ Does liability insurance have a deductible?

No. Liability insurance covers damage and injuries you cause to others, and there’s no deductible because you’re not receiving a payout. Deductibles only apply to coverages that pay for your own losses, like collision, comprehensive, gap insurance, PIP and uninsured motorist property damage coverage.

Methodology

Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.

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Our experts

Ben Moore

Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.

Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.

^†Over the past 12 months, 25% of drivers who switched with Jerry paid $89 or less per month. Not all customers find savings. Savings depend on state, policy features, coverage, driving history and other factors.

Editorial Note: This article was written by a paid member of Jerry’s editorial team. Statements in this article do not constitute advice or recommendations. You should consult with an insurance professional about your specific circumstances and needs before making any insurance decisions.