Oftentimes many new drivers will ask what a deductible means when it comes to car insurance. This is a great question. When you start paying for car insurance you will want to be aware of what a deductible means and what your specific deductible is. So, what is a deductible in car insurance? The deductible is the amount that you will need to pay out of pocket before the insurance covers the rest. For example, if you have an $800 dollar deductible and the car repairs are going to cost $2,500, insurance will cover $1,700. You will be responsible for the $800 deductible.
It is important to be aware of what your specific policy covers. In the event of an accident, you want to know exactly what you are responsible for. Your insurance agent will be able to explain your car insurance and the deductible associated with it. Make sure you have a full understanding of your car insurance deductible as it is important for everyone to be on the same page. Car accidents are stressful enough, you don’t want any miscommunication on your deductible and the amount you are responsible for.
How Does A Car Insurance Deductible Work?
So, you might be wondering how exactly does a car insurance deductible work? It is important to note that car insurance deductibles are not the same as health insurance deductibles. As you probably know, once you reach your health insurance deductible you typically only pay the copays for the rest of the year. However, that is not the same when it comes to car insurance deductibles.
With a car insurance deductible, each claim is considered on its own. The amount does not keep compiling until you reach your deductible. So, if you are in multiple car accidents within that year you will have to pay your deductible each time. It does not compile from the first accident to the second, it will reset each time.
Can I Choose My Deductible Amount?
In most situations, you are able to choose your deductible amount. There are a few things you want to consider when you are deciding what your deductible amount should be. You first want to determine how much you want to be responsible for paying out of pocket. Typically, once a claim is filed you are responsible to pay up to your deductible out of pocket.
Additionally, your deductible amount will impact your car insurance premium. What does this mean? If you choose to pay a low deductible amount then you will most likely pay a higher insurance premium for the coverage. You will want to compare and contrast the two to calculate a reasonable deductible amount that you are able to pay.
Is There A Way To Waive My Car Insurance Deductible?
In the majority of situations regarding car accident claims a deductible will apply. There are a few circumstances that your deductive could get waived. This could happen if you have comprehensive coverage and make a claim to repair your windshield. Your insurance company might waive your deductible for you. You never one to rely on word of mouth when it comes to car insurance deductibles since every situation is different and each insurance company has its own rules. The best way to determine if you can waive a deductible is to contact your car insurance agent. They will be able to walk you through your entire policy and answer any questions you might have.
What Are Some Scenarios Where I Don’t Have To Pay My Deductible?
There are a few different scenarios where you don’t have to pay your car insurance deductible, but again it is dependent on the type of policy you pay for. One situation where this typically applies is if an insured driver hits you. If someone else hits you and the police report determines they were the at-fault party, their insurance company can pay for your repairs. If this happens, you will not need to pay your deductible.
However, if you get hit by an uninsured driver, a deductible might apply to your situation. Again, your experienced car insurance agent will be able to give you insight into your policy. If you explain to them what happened during your accident they will be able to further explain if you will need to pay your deductible in the event of an uninsured individual hitting you.
Another situation where you won’t have to pay a deductible is if another individual files a claim against your liability coverage. It is important to note that there is no deductible on a liability claim. So, what does this mean? This means that you will not pay anything out of pocket for an accident claim where your insurer pays for the damages. The amount is dependent on your policy’s limits. Every insurance company has different rules.
Lastly, if you elected for no deductible then you obviously won’t need to worry about paying a deductible. This will only apply if you elect a $0 deductible on your policy’s comprehensive coverage. It is important to know what you select when it comes to the different policies that your car insurance offers.
What Does The Claim Process Look Like?
If you have been involved in a car accident and suffered large damages to your vehicle, you will want to file a claim with your insurance company. It is important to note that you will need to file this claim as soon as possible. The insurance company will ask you for details regarding the accident, the other individual’s insurance company, and the contact information of everyone involved in the accident. Your insurance agent will also ask you for a copy of the police report.
So, it is important that you always call the police following an accident as well. The police will file a police report stating what they saw or what they think happened at the time of the accident. They will also explain who the at-fault party was. Once you have submitted all of the proper documentation to your insurance agent, an adjuster will estimate all of the repair costs. Your insurance company might have some restrictions on who you need to get your car repaired by. Ultimately, your insurance company will need to approve the repair costs before anyone starts working on your car.
How Does A Car Insurance Deductible Impact Your Car Insurance Premium?
Your car insurance deductible definitely correlates with your car insurance premium. For example, the higher your deductible the lower premium you will pay. Controversy, the lower the deductible the higher premium you will pay. It is all very dependent on what you are willing to pay for each.
There are a few factors to consider when you are choosing what to pay for your car insurance deductible. The first question you want to ask yourself is how much of a deductible can you afford? You need to always be prepared to have to pay the full amount. If you happen to get in an accident where your car needs a lot of expensive repairs, you will have to pay your full deductible amount. You want to be prepared to pay this amount. Sometimes insurance companies will have a minimum amount. You will want to discuss these requirements with your insurance agent to make sure you know exactly what your plan covers and what to expect in the unfortunate event of an accident.
Another question you want to ask yourself is how much is your car worth? The value of your car will make a big difference in what type of deductible you should pay. Typically, the more expensive your car is the more it will cost to insure. It is always important to consider all of your factors before you decide on a deductible amount. Hopefully, you won’t ever need to deal with the deductible, but it is important to carefully choose a policy that you can afford to pay.
If you were recently involved in an accident that damaged your car pretty badly and have a high deductible, you might be thinking about not wanting to repair your car. If you don’t want to spend the money to fix your car or pay your car insurance deductible, you don’t have to. You have other options.
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