What Is a Car Insurance Deductible?

This is the amount that you have to pay before your insurance kicks in. For example, let’s say you have a car collision insurance policy with a $500 deductible. If you get in an accident and sustain $800 in damage to your car, then you will pay the first $500 and the insurance company will pay the rest. The greater your deductible, the less a car insurance policy costs.