Ask the Agent: Everything You Need to Know About Deductibles

Sep 25, 2018 1 min read

Whether you have auto and home or health insurance, you have likely heard the term “deductible” before. Deductibles can be complex – we’ve answered the most common questions, and help you understand how you can save money on your insurance rates by choosing a deductible that best works for your policy and your budget.

What is a deductible?

In the simplest terms, a deductible is the dollar amount you are responsible for if you have a claim.

For example, if your car is in a hail storm, and it will cost $6,500 to make repairs to your vehicle, and you have a $500 deductible, you would be responsible for $500 of the total amount of repairs.

What deductible amount is right for me?


Generally, if you assume more risk (by agreeing to pay more “out of pocket” with a higher deductible in the event of a claim), you will have lower insurance rates. Consider how high of deductible you would be comfortable paying if something sudden happens. If a higher deductible makes sense for you, you have the potential to pocket the savings from lower rates, especially when you consider those years in which you do not incur any losses.

If a storm damaged my car and my home, would I pay two separate deductibles?

When you have insurance through Farm Bureau Financial Services, your home and auto coverage may be insured under a single Member’s Choice policy.

If there is a hail storm that does damage to the roof on your home, you are still covered. With one policy, if you have a single event that causes damage to both your car and home, you would pay a single deductible. This bundled policy can save client/members money!

Farm Bureau is always looking for ways to help you save money on insurance costs, while providing the protection you need. Contact your Farm Bureau agent to learn more about ways to save, while protecting your auto, home, life and property.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.