When it comes to deductible car insurance, you can typically get deductibles that range from $0 to $1,000.
Though, not every insurance company offers zero deductible insurance. If you need car insurance that has a $0 deductible, you can use our comparison tool to find a policy.
Car Insurance Deductibles
Your car insurance deductible is the amount you pay before your insurance company pays the claim.
When most people think of deductibles, they think of collision insurance, which pays for the damages or replacement of your car in the event that you are in an accident that you caused.
When a deductible is applied to a collision insurance claim, your car insurance company pays your entire repair or replacement bill minus your deductible amount.
For example, if your car is wrecked in a car accident that causes $3,000 worth of damage and your deductible is $500, your insurance company pays $2,500. You are responsible for paying the $500 from your own funds.
If the car accident results in a total loss of your vehicle, your insurance company will pay the value of your vehicle just prior to the accident minus your deductible.
This means that if your car was worth $10,000 and your deductible is $500, your insurance company will send you a check for $9,500.
If you have a collision car insurance policy with a zero deductible, you pay nothing when you get into an accident or your car is totaled in an accident.
For example, if your post-accident car repair bill is $3,000, your car insurance company pays the entire $3,000 bill. The same happens if your $10,000 car is totaled in an accident. Your car insurance company would write you a check for the entire amount.
Where Zero Deductible Policies are Likely to Occur
Not every insurance company offers zero-deductible collision insurance.
Instead, most drivers are likely to find zero deductibles inside the comprehensive portions of their policies.
Comprehensive insurance pays for damage that occurs to your car while it is parked. Some common examples include:
- falling objects hitting your car
- hail damage
If the comprehensive portion of your insurance policy has a zero deductible, you would pay nothing for the repairs to your car.
However, if the repairs are more than your car’s value, your insurance company may declare it a total loss and simply write you a check for the value of your car prior to the damage or prior to your car being stolen.
Pros and Cons of Zero Deductible Insurance
Zero deductible insurance may be a good choice for you if your state allows zero deductible insurance policies.
These types of policies can provide you with peace of mind, knowing that you will not have to pay any money towards car repairs if you were to get into an accident or your car was to become damaged in a non-car-accident event.
If you want to keep your insurance premiums at an affordable rate, you may want to go with a higher deductible.
Zero deductible insurance policies are more expensive than policies with higher deductibles. You may also find your car more easily declared a total loss if you have a zero deductible policy.
For example, if your car is worth $5,000 prior to the accident and your repair bills are $5,250, your car would be declared a total loss by your insurance company.
If you had a car insurance policy with a $500 deductible, your repairs would be beneath the value of your car, and it would be less likely to be declared a total loss.
If you need a new car insurance policy that includes a deductible, you can use a comparison tool to find all the deductible policies in your area. Once you have the results, you can read through the policy details and choose the policy that best meets your needs.