The policy deductible is the initial amount you have to pay out of your pocket for each claim. It's important to understand this when choosing a car insurance policy. If the claim amount is equal to or less than the deductible, the insurance company won't pay anything. For example, if the deductible is ₱3,000: If you have a loss that costs ₱13,000, the insurance company covers ₱10,000, and you pay the remaining ₱3,000. But if the loss is only ₱2,900, you have to pay the full amount because it's below the ₱3,000 deductible. Think of the deductible as a minimum—if the loss is below it, you pay; if it's above, the insurance company covers it.