What a deductible change means

A deductible that went from $500 to $1,000, or became a percentage, and what that changes when you file a claim.

Terms in this guide

Tap a term to read what it means.

Collision deductible. The part of a collision repair you pay before the policy pays the rest. At $1,000, a $3,200 repair means you pay the first $1,000.

Comprehensive deductible. What you pay first when the car is damaged by something other than a crash: hail, theft, a falling branch, a deer. It is often set apart from the collision deductible.

All other perils deductible. The deductible for every covered loss that does not have its own, like fire or a burst pipe. It is the number most people mean by "my deductible".

Wind and hail deductible. A separate deductible for wind or hail damage. It is either a set dollar figure or a share of the dwelling limit, so 2% on a $400,000 dwelling means the first $8,000.

Percentage deductible. A deductible written as a share of the dwelling limit instead of a dollar figure. It is worked out from the limit on the page, not from the size of the repair.

A deductible is the part of a covered loss you pay before the policy pays the rest. It is one of the few numbers on a policy that matters only on the worst day, which is why a change to it so often goes unread.

Deductibles can change at renewal because you asked for it, because an agent made a change, or because the carrier changed its terms for the coming term. In each case the new number is on the new declarations page.

A policy can have several deductibles

Car policies usually carry a collision deductible and a separate comprehensive deductible, which covers things like hail, theft, and hitting a deer. Liability coverage, which pays others, usually has no deductible at all.

Home policies often have an all other perils deductible for most losses and a separate one for wind and hail. In some coastal states there is also a hurricane or named storm deductible. Each one applies to its own kind of loss, so a change to one leaves the others where they were.

Flat deductibles

A flat deductible is a dollar amount: $500, $1,000, $2,500. When it moves from $500 to $1,000, the amount you pay first on a paid claim of that type doubles. A higher deductible usually comes with a lower premium than the same policy would carry with a lower one, which is part of why it can change at renewal without much notice.

On many policies the deductible applies once per claim. Two separate events in a year, like a fender bender in spring and a cracked windshield in fall, can mean two deductibles. Some policies handle glass or certain losses differently, and the policy form says how.

Percentage deductibles

A percentage deductible is common for wind and hail on home policies in storm-prone areas. It is a share of the dwelling limit, not a share of the damage. At 2% on a $400,000 dwelling limit, the deductible is $8,000, whether the repair costs $9,000 or $90,000.

Because it is tied to the dwelling limit, a percentage deductible rises each time the limit does. A page may show the percentage alone, or the percentage with the dollar figure beside it. When only the percentage is shown, the math is worth doing.

ExampleThe same two claims under last term and this term

Line	Last term	This term
Collision deductible	$500	$1,000
You pay first on the $3,200 repair	$500	$1,000
Dwelling limit	$400,000	$400,000
Wind and hail deductible	$1,000	2% ($8,000)
You pay first on the $12,000 repair	$1,000	$8,000

Example numbers. A $3,200 collision repair and a $12,000 hail repair, assuming the carrier pays each claim. The deductible is the part you pay first.

Reading the change on the page

Deductibles are usually listed beside the coverage they apply to, or in a block of their own. Compare the number and the type: a deductible that went from $1,000 to $1,000 looks unchanged, but one that went from $1,000 to 2% has changed in kind.

Questions to ask your carrier or agent

Your carrier or agent can tell you what changed and why. Questions that help:

Which deductibles changed this term, and was the change requested or made by the carrier?
Is the wind and hail deductible a dollar amount or a percentage, and what is it in dollars?
Is there a separate hurricane or named storm deductible on this policy?
How did the premium change along with the deductible?
Does the deductible apply per claim, and are any losses handled differently?

Next renewal, side by side

Halfstone puts this term's declarations page next to last term's, line by line, with a plain note on each line. A changed number or a missing form is easy to see before you call. See a Renewal Review, or start free with the policy that renews next.