What is a deductible?

The deductible is the portion you agree to pay on any damage to your car before your insurance comes into effect. A common collision deductible, for example, is $500. This means that you would pay the first $500 of any repair bill and your insurance company would pay the balance. Any damage that cost less than $500 would therefore be your own responsibility. There is no deductible in the case of fire or theft of the entire vehicle.