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Auto Insurance
Deductibles and Limits

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Understanding your car insurance policy

If you're looking for auto insurance, it's important to understand what deductibles and limits mean for you and your policy. Let's say you're in a covered car accident. Your deductible would be the amount of money you pay out-of-pocket before your policy kicks in. But, every policy type only covers up to a certain amount. This is called a limit.

Learn more about deductibles.

Let's say your car is damaged in a covered accident and will cost $5,000 to repair. Your chosen deductible is $500. This means you pay $500 and your insurance pays $4,500.

Keep in mind, choosing a higher deductible may mean you pay less for insurance now, but you may have to pay more later if you have an accident.

A woman who has just been in an accident stands next to her car on the curb, talking on her phone to get help.


A woman who has just been in an accident gets her car towed while she is on the phone.

Learn more about limits.

Now let's say you're in an accident where the other driver involved is injured, and you owe $57,000. Your chosen limit for bodily injury liability coverage is $50,000. This means insurance pays $50,000 and you pay $7,000.

Remember, choosing a higher limit may mean you pay more for insurance now, but it could save you money later if you have an accident.

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Please note that this website provides only a summary of auto insurance, written to illustrate in general terms how auto insurance works. Your insurance policy is the legal contract that contains the terms and limitations of your coverage. You should carefully review the contents of your policy. All products and coverages are subject to availability and limitations. Whether an accident or other loss is covered is subject to the terms and conditions of your insurance policy.

Allstate Your Choice Auto®, Accident Forgiveness, Deductible Rewards®, Safe Driving Bonus® Check, and New Car Replacement are optional and subject to terms and conditions. NOT AVAILABLE IN EVERY STATE. Patent pending. Deductible Rewards apply to collision coverage. In NY and PA, deductible amount will not go below $100. Safe Driving Bonus Check is not available in every state and may not be available for renewal customers until next policy period. Amounts less than $5 will be applied to renewal bill. Safe Driving Bonus is optional and subject to terms and conditions. Policy issuance is subject to qualifications.

Certain property and casualty insurance offered through Allstate Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company and Allstate Fire and Casualty Insurance Company: Northbrook, IL; Allstate County Mutual Insurance Company: Irving, TX; Allstate New Jersey Insurance Company: Bridgewater, NJ. Life insurance and annuities offered through Allstate Life Insurance Company and in NY, Allstate Life Insurance Company of New York. Please contact your Allstate Agent, call 1-800-ALLSTATE for complete information on other products and services.

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