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What is a vehicle deductible?

2016-01-13 07:00:00

Higher the deductible, lower the premium


A deductible is the amount someone must pay before the insurance company pays the rest of the claim or bill, up to the limits of the policy. Deductibles are for comprehensive and collision coverage on the policy owners vehicle. The most common deductible amounts are $100, $250, $500 or $1,000.

For example, if you are in an accident and your car has $2,000 of damage, and your deductible is $500, you are required to pay $500, and the insurance company will take care of the leftover $1,500.

Pick a deductible that you can afford but not so low that your monthly costs skyrocket. My recommendation is making up the difference of going to the next deductible level within 2.5 to 3 years. For example, when increasing your auto deductibles from $500 to $1,000 you should make up that additional $500 increase with premium savings over the next 2.5 – 3 years. Premium should decrease at least $166 a year. Ask your agent to walk you through the deductible options and pick the best value within your budget.

Questions about your specific situation or want a quote? Please call or email one of our four offices below:



Warner and Company Insurance
318 Broadway
Fargo, ND 58107-1470
Phone: (701) 237-6414
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Kramer Agency
812 Burlington Drive, Suite 100
Bismarck, ND 58504-9553

Phone: (701) 255-4502
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Schiller Insurance
817 Washington Avenue
Detroit Lakes, MN 56501-3013

Phone: (218) 847-5696
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Thompson-Schaefer Insurance Agency
311 South 4th Street • Ste. 102
Grand Forks, ND 58201-4782

Phone: (701) 775-4626
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