A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 15, 2021

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Important facts to know...

  • Zero deductible policies are not available in every state
  • Even in states that allow zero deductible policies, not all insurance company may offer zero deductible policies
  • Zero deductible policies cost more than policies with a higher deductible amount
  • A comparison tool can help you locate a zero deductible car insurance policy

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.

What types of insurance coverage do you have?

Most states have minimum coverage requirements for auto insurance coverage. The requirements usually consist of liability insurance (bodily injury liability and property damage liability coverage). Liability insurance pays for other drivers’ damages in an accident you caused. It does not pay for your own vehicle damage or medical expenses after an at-fault accident.

Collision coverage pays for your damages after an accident, regardless of who was at fault, and comprehensive coverage pays for damages that were not caused by an accident. These coverages are not required by law but they may be required by your lender if you’re leasing your vehicle.

Some states require you to have personal injury protection, which pays for medical expenses, or uninsured motorist coverage, which pays for damages if you’re in an accident with someone who does not have insurance. Underinsured motorist coverage may be included with the latter on your auto policy.

Review your coverage options carefully and evaluate your needs. The more coverage you add to your policy, the more expensive your auto insurance premium will be, but it’s important to make sure you’re fully protected.

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What are auto insurance deductibles?

Your car insurance deductible is the amount you pay before your auto 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 cost.

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 auto accident results in a total loss of your vehicle, your auto insurance provider 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 coverage auto 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.

So what’s the catch? You’ll likely pay a lot more in monthly premiums for an auto insurance policy with a zero deductible.

Where are you likely to find zero-deductible policies?

Not every insurance company offers zero-deductible collision insurance.

Instead, most drivers are likely to find zero deductibles inside the comprehensive coverage 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
  • vandalism
  • theft

If you have a zero-dollar comprehensive deductible, you would pay nothing for the repairs to your car.

However, if the repairs are more than your car’s value, your insurance provider 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.

What are the pros and cons of zero-deductible auto 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.

Begin comparing today by entering your zip code below.