How Does An Auto Insurance Deductible Work? 
That is a great question ! Deductible , in insurance speak , is the amount of money that you need to pay before the insurance company pays their promised share . The idea is that if you have to pay a part first , it is an incentive for you to be more careful and avoid claims that would cost you money . The amount of your premium payment hinges in part upon the deductible that you choose . The more you are willing to pay , the less you monthly payment is , as a rule . The lower your deductible , the more the insurance company has to pay , so the higher your payment . The trick is to find a balance between what you can afford to pony up for your deductible vs. the monthly cost of the policy . I hope that helps , thanks for asking ! 