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Personal Auto

Deductible

The amount you pay out-of-pocket before insurance pays the rest of a covered claim.

If you have a $500 deductible on collision coverage and you total your car in a $20,000 collision, the carrier pays $19,500 and you absorb the $500. Higher deductibles lower your premium (because you're absorbing more risk); lower deductibles raise your premium. Each coverage line (collision, comprehensive, etc.) has its own deductible.

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