What Is a Normal Deductible Across Insurance Types?

A deductible is the initial sum a policyholder agrees to pay out-of-pocket towards a covered loss before their insurance coverage begins. This mechanism serves as a cost-sharing tool between the insured and the insurance provider, influencing both the immediate expense of a claim and the ongoing cost of the policy.

What a Deductible Is

When an insured event occurs, such as a car accident or a medical emergency, the policyholder is responsible for paying this predetermined amount directly. Only after this deductible is satisfied will the insurance company begin to cover the remaining eligible expenses, up to the policy’s stated limits.

For example, if a policy has a $1,000 deductible and a covered loss totals $5,000, the policyholder pays the first $1,000, and the insurer covers the remaining $4,000. This out-of-pocket payment applies per claim for most property and casualty insurance types, meaning a new deductible would apply for each separate incident. For health insurance, deductibles typically reset annually, requiring the insured to meet the amount each policy year before benefits fully kick in.

Deductibles Across Insurance Types

Deductible amounts vary significantly across different insurance products, reflecting the unique risks and financial structures of each type of coverage. These variations are influenced by factors such as the type of asset being insured, the likelihood of a claim, and the policyholder’s chosen premium level.

Health Insurance Deductibles

Health insurance deductibles can range widely depending on the plan type and whether it covers an individual or a family. For employer-provided health plans, the average individual deductible was approximately $1,787 in 2024, though this could be higher for small companies (around $2,575) and lower for large companies (about $1,538). Family deductibles in employer-sponsored plans might average around $10,310, though some Health Maintenance Organizations (HMOs) had average family deductibles closer to $3,000 in 2023.

Plans purchased through the Health Insurance Marketplace also exhibit varied deductible levels, categorized by “metal” tiers. In 2024, Bronze plans typically had the highest average deductibles at $7,258, followed by Silver plans at $5,241, Gold plans at $1,430, and Platinum plans, which often had very low deductibles averaging $97. High-Deductible Health Plans (HDHPs) are specifically defined by the Internal Revenue Service (IRS) with minimum deductibles. For 2025, an HDHP must have an annual deductible of at least $1,650 for individuals and $3,300 for families. These plans are often paired with Health Savings Accounts (HSAs) to help manage out-of-pocket costs.

Auto Insurance Deductibles

For auto insurance, deductibles generally apply to collision and comprehensive coverages, which protect the insured’s vehicle from damage. The most common deductible amount chosen by drivers is $500, though options typically range from $250 to $2,000, and sometimes up to $2,500. Some policies may even offer lower deductibles, such as $100.

Policyholders can often select separate deductible amounts for collision coverage, which addresses damage from accidents with other vehicles or objects, and comprehensive coverage, which covers non-collision events like theft, vandalism, or natural disasters. Collision deductibles commonly fall between $100 and $2,000, while comprehensive deductibles typically range from $100 to $2,000. Each time a claim is filed under these coverages, the selected deductible amount is applied.

Homeowners and Renters Insurance Deductibles

Homeowners insurance policies typically feature standard deductibles that apply to most covered perils like fire or theft. These deductibles commonly range from $100 to $5,000, with an average often cited around $1,000. Many policies offer choices within the $500 to $2,500 range.

In addition to standard deductibles, properties in areas prone to specific natural disasters may have separate, often percentage-based, deductibles for events like wind, hail, or hurricanes. Wind/hail deductibles and hurricane deductibles are frequently calculated as a percentage of the home’s dwelling coverage, usually ranging from 1% to 10%, but can sometimes be as high as 15%.

For example, a 1% deductible on a home insured for $300,000 would mean a $3,000 out-of-pocket expense for a covered wind or hail claim. Some wind/hail deductibles might also be higher flat dollar amounts, such as $5,000. Renters insurance deductibles, which apply to personal property coverage, often fall within a range of $250 to $2,500. The most common deductible amounts selected are $500 and $1,000.

How Deductibles Impact Your Costs

The deductible amount chosen for an insurance policy has a direct and inverse relationship with the premium paid for coverage. Generally, opting for a higher deductible will result in a lower monthly or annual premium. This is because the policyholder assumes a greater share of the financial risk for smaller claims, reducing the insurer’s potential payout.

Conversely, selecting a lower deductible means the insurance company will begin paying for covered losses sooner, which typically leads to a higher premium. This financial trade-off requires careful consideration of personal financial circumstances and risk tolerance. A higher deductible can save money on regular premium payments, but it demands that the policyholder have sufficient funds readily available to cover the larger out-of-pocket expense if a claim arises. For instance, increasing a homeowners insurance deductible from $1,000 to $2,500 could reduce the premium by approximately 12%. Conversely, a lower deductible provides more immediate financial protection in the event of a claim but at the cost of higher ongoing premiums.