A deductible on your insurance policy is what you pay out of pocket before the insurance kicks in. This is to prevent extremely small claims from being filed as insurance is for larger emergencies. For example, if your auto deductible is $250 and you have $2,000 in damages, the insurance company will pay the contractor repairing it $1,750, and you would pay your $250 deductible.

Here’s something you should keep in mind when choosing coverages and deductibles.
Higher deductible = Lower car insurance rate and higher out of pocket costs.
Lower deductible = Higher car insurance rate and lower out of pocket costs.