How to Choose the Right Auto Insurance Deductible

When reviewing or shopping for auto insurance, one of the most important decisions you’ll make is choosing your deductible. At My One Stop Insurance Agency, we know that understanding deductibles can help our clients make confident, informed financial choices about their coverage and out-of-pocket costs.

What Is an Auto Insurance Deductible?

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in after a covered claim. For example, if you have a $500 deductible and your covered repair costs are $2,000, you would pay the first $500, and your insurer would cover the remaining $1,500. Deductibles typically apply to collision and comprehensive coverage, not to liability insurance.

How Do Deductibles Work in Texas?

Local drivers can usually choose their deductible amount when setting up their auto insurance policy. However, it’s important to note that the deductible you select directly affects your premium, which is the amount you pay for your insurance.

Generally, a higher deductible means a lower premium, while a lower deductible results in a higher premium.

Factors to Consider When Choosing a Deductible

Selecting the right deductible is a personal decision, but here are some key points our team recommends considering:

• Your budget—Can you comfortably afford to pay the deductible amount if you need to file a claim?
• Vehicle value—If your car is older or has a lower market value, a higher deductible may make sense.
• Driving habits—If you drive frequently or in high-traffic areas, you may want a lower deductible for added financial reassurance.
• Premium savings—Compare how much you’ll save on your premium by increasing your deductible. Sometimes, the savings may not be significant enough to justify a higher out-of-pocket cost.

Making the Right Choice for You

There’s no one-size-fits-all answer when it comes to choosing a deductible. Our team at My One Stop Insurance Agency is here to help drivers weigh their options and find the balance between affordable premiums and manageable out-of-pocket costs.

If you have questions about your auto insurance deductible or want to review your policy, contact us today. We’re committed to helping you make the best decisions for your coverage and your budget.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.