 TITLE: What Happens if You Can’t Pay Your Car Insurance Deductible? CONTENT: How Does a Car Insurance Deductible Work?\n-----------------------------------------\nAuto insurance has two main costs: your premium and deductible. Your premium is what you pay each month to keep the coverage policy, and your deductible is the amount you'll have to pay out of pocket for auto repairs before your insurance coverage kicks in.\nDeductibles can range from a few hundred to a few thousand dollars. A policy with a higher deductible will be cheaper than a similar one with a lower deductible, and vice versa. Drivers looking to save money on a monthly premium may ask their insurer to raise their deductible, with the risk being that they'll pay more out of pocket if they're involved in an accident.\nShould you ever get in an accident, the insurance claim process will work like this:\nLet's say your deductible is $500 and an accident causes damage that will cost $2,000 to repair. You will have to pay the first $500 of repairs, and the insurance company will cover the remaining $1,500. If repairs cost less than $500, you will be responsible for paying those costs on your own.\nWhen your insurance provider pays out claims—it may send a check to cover the cost of repairs to you or to your mechanic—your deductible will be taken out of the total. END