About Auto Insurance Deductibles
A deductible is the amount of money you are responsible for when Allstate pays to repair or replace your car if you have a claim covered by your policy.
Example: A driver damages his car in an accident and it will cost $5,000 to repair.
Driver has a $500 deductible.
Driver pays $500.
Insurance pays $4,500.
Bottom Line: 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.
About Auto Insurance Coverage Limits
Each coverage you buy has a limit. If you have an accident claim covered by your Allstate policy, Allstate will pay for damages up to the limit described in your policy.
Example: Bodily injury liability limits. A driver causes an accident in which someone is injured. The case goes to trial and there is a verdict to compensate the injured person with $57,000.
Driver has a $50,000 limit per person for Bodily Injury Liability.
Driver pays $7,000.
Insurance pays $50,000.
Driver has a $100,000 limit per person for Bodily Injury Liability.
Driver pays $0.
Insurance pays $57,000.
Bottom Line: Choosing a higher limit may mean you pay more for your insurance now, but it could save you money later if you have an accident.