A deductible is a predetermined dollar amount that the consumer has agreed to pay toward each repair before their insurance money kicks in. For example, if you’ve agreed to a $500 deductible and your car suffers $1200 in damages, you’ll pay the deductible amount ($500) up front and your automobile insurance company will pay you the remaining $700. Insurance was not designed to be a maintenance package for small damages – that’s part of being a car owner. Without a deductible, consumers would make claims for any and every small damage their vehicle has. Before making an insurance claim, it’s important to consider what portion of the cost your deductible covers to determine whether it’s actually worth submitting. Remember that every claim you make remains on your record for 6 years and affects your insurance rate. Pro tip: if the damages cost less than twice the amount of your deductible, don’t claim it with insurance — save yourself the black mark on your resume and pay for the repair out of your pocket.