Okay, lets clear this up in plain English, deductibles confuse way too many people.

A deductible is the amount you agree to pay out of your own pocket before your insurance kicks in and starts paying. Only applies to stuff like collision and comprehensive coverage, not liability (remember, liability is for when you hurt someone else, no deductible there).

Simple example: you pick a $500 deductible. You slide into a pole, repairs cost $3,200. You pay the first $500, insurance covers the remaining $2,700. Easy.

Now, heres the trick, the higher your deductible, the lower your monthly premium. Insurance companies love when you take on more risk yourself.

Real numbers people see all the time in 2025:

- $250 deductible → premium maybe $1,450 a year
- $500 deductible → drops to around $1,250
- $1,000 deductible → often down to $1,050-$1,100
- $2,000 deductible → can be $900 or less for the same exact coverage

That $2,000 choice can literally save you $500-600 every year. Do it for three years and you already have $1,800 in your pocket, almost covers the deductible if you ever need it.

So when should you go high and when to stay low?

Go high deductible ($1,000-$2,000) if:
- You have a solid emergency fund
- You rarely get into accidents
- Your car isnt worth a ton (no point paying extra premium to protect a $6,000 beater)
- You just want the cheapest bill every month

Keep it low ($250-$500) if:
- You drive a newer or expensive car
- You have bad luck or live where deer jump out daily
- You cant easily come up with $1,500 cash tomorrow if something happens
- Peace of mind matters more than saving $40 a month

Quick story, my cousin always picked $250 because “I dont wanna pay anything if I crash.” Then he paid an extra $720 every year for eight years straight and never filed a claim. Thats almost six grand wasted. Now he runs $1,500 deductible and throws the savings into a separate “car repair” account. Smart move.

Bottom line: treat your deductible like a lever. Pull it higher and watch your premium drop, just make sure you can actually cover it if the day ever comes. Most safe drivers with a little savings do way better with $1,000 or higher these days. Your wallet will thank you.