Skip to main content
July 11, 2022

What you should know about auto insurance deductibles

At OMA Insurance, we can help you understand how auto insurance deductibles work, so you can choose the right deductible for your situation.

As a physician, you know how important insurance can be – but sometimes insurance can get complicated. OMA Insurance1 is here to help you understand how your auto insurance deductible works and how it affects how much you pay.

What is a car insurance deductible?

Your auto insurance deductible is the amount you are responsible for paying, prior to your insurance company covering the rest of your claim. Your deductible will directly influence how much you’ll pay for your policy. For example, if you have an accident and cause $5,000 worth of damage to your vehicle and you have a $1,000 deductible, you’ll need to pay the $1,000 before your insurance company pays the remaining $4,000.

How much is my deductible?

If you want to know the deductible amount on your auto insurance, you can either check your policy documents, or contact your insurance company. Most insurance companies allow you to change your deductible amount at any time.

How to choose the right deductible for my car insurance?

When buying auto insurance, you will have the opportunity to choose a deductible amount that best suits your financial situation. Consider how much you typically have on hand to cover emergencies. If there’s a risk of not having enough to pay out a higher deductible, then go for the lower one.

The more expensive your car is, the more it will cost to insure. If you drive a newer vehicle, you may want to consider a higher deductible to lower your premiums.

Am I responsible for the deductible when the accident wasn’t my fault?

Normally, if you’re not at-fault, you do not have to pay the deductible on your car insurance policy. You will have to pay your deductible if you’re at-fault or partially at-fault for the accident.

What is the comprehensive vs. collision deductible?

Collision insurance helps pay to repair or replace your vehicle if it's damaged in an accident with another car or an object. Comprehensive coverage is not included in basic auto policies. It covers you for non-collision related events such as theft, vandalism and damage caused by weather. You can choose a different deductible amount for each type of coverage.

Is it better to pay out of pocket or use insurance?

If the cost of repairing the damage to your vehicle is close to the amount of your deductible, then you may be better off paying for the repairs out of pocket. When it’s time to renew your policy, any losses in the previous year may impact the amount you will pay for insurance coverage, regardless of whether you made a claim or not.

Learn more about auto insurance deductibles.

1 Conditions apply. The OMA Home and Auto Insurance Program is underwritten by The Personal General Insurance Inc. in Quebec and by The Personal Insurance Company in all other provinces and territories.