If you file a claim on your own insurance policy, the deductible is the dollar amount you have to expend before your insurance policy kicks in and covers the remaining expenses.
Deductibles aim to help lower policy premiums. Most of the time, if you have a higher deductible, you will pay a lower premium for your coverage and vice versa. Suppose the value of the property damage is less than your deductible. In that case, you won’t receive anything from the insurance company for it. You will need to pay for it entirely out of your own pocket.
For example:
Your car insurance company finds that your vehicle needs $3,000 worth of repairs. You have a $1,000 deductible for property damage coverage. You take your car to an insurance-approved repair shop and pay your $1,000 deductible. Your car insurance company must pay the remaining $2,000 directly to the repair shop. You owe nothing further after your deductible. However, if your damages were only worth $800, you would be responsible for paying them on your own since the repairs don’t exceed your deductible amount.
