Is Auto Insurance Deductible Per Incident or Per Year?

Last Updated on February 5, 2026

Car insurance deductibles confuse a lot of people because they don’t work like health insurance. With auto insurance, your deductible is usually per incident, not per year. That means if you have two separate covered losses in the same year, you can end up paying two deductibles.

Understanding how deductibles, claims, and premiums interact makes it much easier to pick the right coverage when reviewing or updating your car insurance policy.

• Auto insurance deductibles are typically charged per incident (per claim), not once per year like many health insurance deductibles.
• Deductibles usually apply to collision and comprehensive claims, while liability coverage generally does not have a deductible.
• If you have multiple covered losses in the same year, you may owe multiple deductibles—one for each separate incident.
• Higher deductibles usually lower your premium, but only choose a deductible you could afford to pay quickly after an accident.

Quick answer: Is an auto insurance deductible per incident or per year?

In most cases, it’s per incident (per claim), not per year. If your policy has a $500 collision deductible and you file a collision claim, you generally pay $500 for that claim. If you later have another separate collision loss, you generally pay the deductible again.

Key detail: deductibles usually apply to the coverage that pays for your vehicle (like collision and comprehensive), not to the coverage that pays for other people (like liability).

Which types of car insurance have a deductible?

Not every coverage has a deductible. Here’s the typical setup:

• Liability coverage: Liability insurance usually has no deductible. If you cause an accident, your liability coverage pays for the other driver’s injuries and property damage (up to your limits). Even if you’re at fault, your deductible typically doesn’t apply to that liability payout.
• Uninsured/underinsured motorist: Uninsured motorist coverage often has no deductible (though rules vary by state and by whether the claim is for injuries or property damage). If you’re deciding whether to file a claim, it’s worth checking your declarations page to confirm.
• Collision: Collision coverage usually does have a deductible and helps pay to repair or replace your car after a crash (often regardless of fault).
• Comprehensive: Comprehensive coverage usually does have a deductible and covers non-collision losses like theft, falling objects, weather, and vandalism. For example, hail damage is typically a comprehensive claim.

How “per incident” deductibles work (with examples)

With auto insurance, the deductible usually applies each time you make a covered comprehensive or collision claim. You don’t “hit a yearly deductible” and then get free repairs for the rest of the year.

• Example 1 (two separate losses): You have a $500 collision deductible. In March, you back into a pole and file a collision claim—deductible applies. In October, you’re in a separate crash and file another collision claim—deductible applies again.
• Example 2 (comprehensive + collision in the same year): You carry a $250 comprehensive deductible and a $1,000 collision deductible. A broken window from vandalism is a comprehensive claim (you pay $250). Later, a crash is a collision claim (you pay $1,000).

When you file, you’ll typically pay your deductible as part of the repair process—either directly to the shop or deducted from the insurer’s payment. Many shops accept multiple payment methods, including credit cards.

Can you ever pay only one deductible for multiple damages?

Sometimes. If multiple damages stem from one covered event, insurers may treat it as a single claim with one deductible. But if there are separate incidents (different dates, different causes), you’ll typically have separate claims and separate deductibles.

Also, there are situations where you might not ultimately pay your deductible—like if you’re not at fault and your insurer recovers money from the other driver (subrogation). In those cases, you might get your deductible back later. The timing and rules depend on the insurer and state.

How deductibles and premiums work together

Your deductible can differ by coverage. For example, you might choose a $500 collision deductible but a $1,000 comprehensive deductible. If you buy auto insurance online, you’ll usually pick these options during checkout.

In general, higher deductibles = lower premiums (and lower deductibles = higher premiums). The “right” choice is the one you could comfortably pay on short notice if something happens.

One more thing: filing multiple claims can still affect your future rate because insurers use claim information to evaluate risk. So even if you can handle the deductibles, it’s smart to think through when to file and when to pay for smaller repairs yourself.

Planning for deductibles (so they don’t wreck your budget)

A practical approach is to keep your deductible amount available—either in a dedicated savings bucket or emergency fund. If you can’t realistically come up with $1,000 quickly, a lower deductible may be worth the higher monthly premium. On the other hand, if you can comfortably cover a higher deductible, you may save money long-term with lower premiums.

For a deeper dive into how deductibles work and what affects them, see our full guide to car insurance deductibles.

FAQs on Auto Insurance Deductibles