Some coverages also have deductibles. Deductibles are payments you have to make before the insurer starts to pay. For example, a $500 deductible means that you pay for the first $500 of each loss.

Higher deductibles can lower the cost of your automobile insurance. However, you should consider how high a deductible you can pay if you are involved in an accident.

Deductibles and co-payments: standard and basic policies- you will pay for part of the first $5,000 of medical expenses you or other covered persons have in an auto accident. Your insurer will pay medical bills over the deductible amount you choose. In addition, there is a 20 percent co-payment for medical expenses in excess of the deductible up to $5,000. That means that you pay 20 percent of the medical expenses and the insurer pays 80 percent. For necessary medical expenses over $5,000, the insurer pays 100 percent.

The chart below shows the choice of deductibles and the total out-of-pocket expenses you would have to pay for deductibles and co-payments if you were injured in an accident and had medical expenses of $5,000 or more.

Caution: higher deductibles reduce the cost of your insurance but you may not have that cash available when you or a person covered under the policy has an accident. In some cases, your health insurer may cover part of the deductible. Contact your health insurer for more information.

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