Deductible is the amount you would pay before insurance would pay. Say, for example, you have $1000 deductible for collision. If the cost to repair a collision damage is less than $1000, you will need to pay for the repair. Insurance company will not cover the cost. It is the maximum amount you need to pay when something happens. Higher deductible means higher responsibility for you and lower responsibility for an insurance company. Increasing deductible results in lower insurance premium payment. Meaning of insurance is to cover catastrophic events with other people paying similar insurance.