An auto insurance deductible is the amount of money you have to pay out-of-pocket for repairs before your insurance company covers the rest. Unlike health insurance, there are no annual deductibles to meet when it comes to car insurance. You are responsible for the established deductible of your policy each time you file a claim. After paying the deductible amount for the car, your insurance company will cover the remaining cost to repair or replace your vehicle. In general, you must pay a deductible before your car insurance pays the rest of your claim.
An auto insurance deductible is the amount of money you must pay when you file a claim for an insured loss. Basically, when you have a car accident and file a claim, your claim payment will be reduced by the amount of your deductible. Deductibles are payable per claim. For example, suppose an uninsured driver runs you over. After the accident, you file a collision claim with your insurance company to have your car repaired.
You pay the deductible, get the reimbursement check from the insurance company, and take your car to the body shop. By the time they're done, you barely realize you had an accident. This is key because mechanics may not repair your car until they are paid, or they may keep the vehicle repaired until your debt is settled. Ideally, you should never have a car accident or suffer damage to your car, but you will likely need to repair your car due to damage at some point. The deductible amount you choose should be based on what you can pay if your vehicle suffers unexpected damage.
Collision protection, comprehensive, uninsured motorist, and personal injury coverages typically have an auto insurance deductible. It's important to answer your questions about car insurance deductibles before that happens, so you know what to expect. This type of insurance covers damage caused by events beyond your control, such as fire, flooding, falling objects and vandalism. While it's tempting to get a higher deductible to pay less upfront, you should only choose a deductible that you can pay if your car is suddenly damaged in an accident. You must pay an auto insurance deductible when you file a claim with your own car insurance company after most types of incidents. Whether you're looking for a new career or just want to learn more about Progressive, you'll find all the information you need to get started here.
Similarly, if you've never had an accident and live in a low-traffic area, consider choosing a high deductible for your collision insurance policy. The amount you pay for your deductible depends on your car insurance coverage and the amount of your car insurance premium. Keep in mind that if you finance or lease your car, you may not be able to choose the deductible for your car insurance policy. Unlike health insurance plans where the consumer plan covers all types of health care, car insurance policies are divided into several types of coverage. Similarly, your car insurance deductible will vary depending on that coverage and the cost of your premium.
While it's tempting to get a higher deductible to pay less upfront, it's important to only choose a deductible that you can afford if an accident occurs. Deductibles vary by policy and driver, and you can choose your car insurance deductible when you buy your policy. It's important to understand how deductibles work so that when an unexpected event occurs and damages occur to your vehicle, you know what to expect from filing a claim with your auto insurer. Knowing how much money is required upfront can help ensure that any repairs needed are taken care of quickly and efficiently.