An auto insurance deductible is the amount you will have to shoulder before your insurance carrier pays for the rest of the damage or loss as covered by the policy. In Illinois, for instance, if you’re made to pay for a $25,000 liability coverage and your deductible is $1,000, you’ll have to pay for that $1,000 before your insurer pays for the remaining $24,000.
A deductible may be a set amount or percentage of the total loss or damage. Some people choose to increase their deductibles as this will lessen the premium. However, before deciding to get a higher deductible, make sure you have the money to cover for it should a claim be made.
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