A deductible usually applies to which of the following automobile policy coverages?

A deductible is a specified amount of money that the insured must pay out of pocket before the insurance coverage kicks in for certain types of claims. In the context of automobile insurance, the physical damage coverage, which typically includes collision and comprehensive insurance, is where deductibles are most commonly applied.

When a policyholder files a claim for physical damage to their vehicle—whether from an accident, theft, vandalism, or other incidents—the deductible amount is deducted from the total reimbursement. For instance, if there is $5,000 worth of damage to the car and the deductible is $1,000, the insurance company will pay $4,000 after the deductible is applied.

In contrast, liability coverage—designed to pay for bodily injury and property damage to others—is not subjected to a deductible in the same way. Medical payments coverage also does not involve a deductible and is designed to cover medical expenses for the insured and their passengers regardless of fault. Likewise, uninsured motorist coverage provides benefits to the insured if they are in an accident with an uninsured driver, and it typically does not include a deductible.

Thus, physical damage coverage is the correct choice as it is the area where deductibles are primarily utilized in automobile insurance policies.