FIELD GUIDE / 02 · REVIEWED NOVEMBER 1, 2026
Two costs. One decision.
The premium buys the policy. A deductible is the portion of a covered loss you are responsible for.
Keep the trade-off visible
A higher deductible usually means a lower premium, but more of a covered loss stays with you. Compare the collision and comprehensive deductibles separately; they may be different.
ILLUSTRATION ONLY · NOT A QUOTE
$2,400 covered damage
− $600 deductible
= $1,800 payment
This simplified example assumes the loss is covered and no other limits or adjustments apply. Actual claims depend on the policy and circumstances.
Look at the whole payment schedule
Premiums cover a stated policy term. Installment fees can make paying monthly different from dividing the total premium by the number of months. Ask for the total term cost, including applicable fees.
Read the source: California Department of Insurance: Automobile Insurance (general cost definitions) ↗