Hitting the road means accepting certain risks. If your vehicle is damaged or you're in an accident, your car insurance deductible is key to how much you'll pay out of pocket before your insurer steps in. However, many drivers don't really know how it works and pick a deductible without understanding how it impacts their budget.

In this article, we'll demystify car deductibles and show you how understanding them better can help you save money.

What is a car insurance deductible?

A car insurance deductible is the amount you pay out of pocket when you make a claim that's covered by your policy, like for an accident, theft, or fire. The higher your deductible, the lower your monthly car insurance premium will be, and vice versa.

How does it work when you make a claim?

Your car insurance deductible applies when you get into an accident with your insured vehicle.

• If you're at fault (for example, a collision), you'll need to pay the deductible listed in your policy. Your insurer then pays the rest to cover your vehicle's repairs, based on your coverage.
• If you're not at fault, thanks to the Direct Compensation Agreement in Quebec, you won't have to pursue the at-fault party. At Sonnet, this means if you're not at fault, you won't pay a deductible.
• If fault for the accident is shared, you might have to pay a prorated deductible or the full amount, depending on your policy terms and conditions.
• For some types of claims (theft, vandalism, broken glass, fire, etc.), the deductible usually applies even if you're not at fault, unless your insurer has a special clause (for example, deductible exemption for a broken windshield with certain coverages).

What's your insurer's role with your deductible, and when do they step in?

Your insurer steps in after you've paid your deductible. They cover the remaining repair costs based on your policy's terms and conditions. This payment happens once your claim is processed and approved. Your insurer might offer services to make this process easier.

Some endorsements can change your deductible amount, so always check your policy carefully. Remember your premium reflects these conditions, so choose a deductible that fits your financial situation.

How to choose the best car insurance deductible for you?

Assess your budget and driving history

Start by considering your budget and driving history:

• A higher deductible works well if you have a solid budget and a good driving record, as it can lower your premium.
• A lower deductible is better if your finances are tight or if you've been at fault in accidents recently.
• If your driving history is excellent and you haven't made any claims recently, choosing a higher deductible can help you save on the cost of your insurance.

However, we recommend getting a personalized car insurance quote to find the option that best meets your specific needs.

Consider your car's value

Your vehicle's value plays a big role in choosing your deductible.

• For a high-value vehicle, a higher deductible might be smart given the potential cost of repairs.
• If your car is less expensive, a lower deductible might be more suitable, considering the typically lower repair costs.
• The ideal deductible depends on your vehicle's replacement cost in case of a total loss.

Note: your theft coverage also affects your deductible choice, depending on your car's value.

Look ahead to long-term savings

A higher deductible significantly lowers your premium and leads to lasting savings if you don't make many claims. If a claim does happen, you'll pay more upfront, but you'll save on the overall cost of your insurance in the long run. This option works well if you can cover the cost of an occasional accident in exchange for a lower premium.

Choose Sonnet for a personalized car insurance deductible

Looking for car insurance that truly fits your needs? Insuring your vehicle with Sonnet means you get customizable deductibles, so you can find the perfect balance between your budget and your coverage.

Our online platform lets you get an instant quote and easily compare different deductible options for your insurance. Discover how we can help you save while getting tailor-made coverage.

Common questions about car insurance deductibles

Why do I pay a deductible if I'm already insured?

Your car insurance deductible is your contribution to the costs in case of a covered claim. Choosing a higher amount often lowers your premium. Some claims might be exempt if you're not at fault for the damage. Once you've paid your part, your insurer will take care of the remaining costs. This method helps us share the risks fairly between you and us.

What should I do if I'm responsible for a car accident?

After the incident, contact your insurer right away. If they determine you're at fault, you'll need to pay your deductible before your policy kicks in. The amount varies depending on the type of damage (collision, vehicle theft, vandalism). If you're only partially at fault, the amount you pay might be adjusted based on your share of responsibility. If you're not at fault at all, you won't have a deductible to pay.

Can I change my deductible during my policy term?

Yes, you can adjust your deductible during your policy term by adding an endorsement. This change might affect your premium. We'll guide you through the necessary paperwork. The important thing is to match your deductible to your financial situation and risk tolerance. Don't hesitate to reach out to us to review the best option together.