Deductible is the most important component of your car insurance policy that decides how much you pay for car insurance. Deductible is the amount the insuree will pay pay out of his pocket before the insurer pays for the car insurance claim. The general deductible amount is $100, $500, $1000, etc. For example if you want file a claim of say $2000 and your deductible is $500, you pay the first $500 out of your pocket and the insurance company will pay the remaining $1500. For the same scenario of your deductible is $100 then you pay only the first $100 and the insurance company pays the remaining $1900. So whats the catch? Why don't all the people pay $100 for deductible. The catch is the less the deductible amount the more will be your car insurance premium.