loader

Car Insurance Deductibles: Everything You Should Know About

Car Insurance Deductibles: Everything You Should Know About

Nov 24, 2022

Auto Insurance

Car Insurance Deductibles: Everything You Should Know About Car Insurance Deductibles: Everything You Should Know About

Getting a car insurance policy entails learning new terminologies for a new policy owner. One such unique term is deductibles. When it comes to auto insurance, this term has a different meaning than other insurance policy deductibles.

To understand the concept of the car insurance deductible, keep reading this blog to know about deductibles in car insurance.

What Are the Deductibles in Car Insurance?

While filing a claim, car insurance deductibles refer to the amount the insurance policyholder must pay from their pocket before the insurance company provides the insurance coverage. A deductible is a form of risk-sharing.

For example, according to your car insurance, if you have agreed to pay a deductible of $1000 and your accident damage is $4000, then you are required to pay $1000, and the insurance company will pay the remaining $3000. Remember that the insurance company is liable to pay the insurance claim amount only if the damage cost exceeds the deductible.

Types of Car Insurance Deductibles Coverage

In car insurance, the most common types of coverage include:

  1. Comprehensive coverage Comprehensive car insurance coverage covers damages caused by events excluding collision, wildfire, other natural disasters, theft, and vandalism.
  2. Collision coverage Collision coverage is for the damage caused by another automobile or a fixed structure. In this case, the deductible will only apply to repairing or replacing the car. The amount of deductible will depend on your car insurance type.

Higher Deductible or Lower Deductible - The Better Option

When you buy car insurance, you must select your deductibles carefully. This is a crucial step when you purchase insurance. Deductibles commonly range from $100 to $2,500.

A higher deductible means the car insurance rate will be lower, and you would have to bear higher out-of-pocket costs.

A lower deductible means the car insurance rate will be higher, and you would have to bear lower out-of-pocket costs.

Need Help with Car Insurance Deductibles Coverage? Contact Weeks and Associates Insurance Services!

The most commonly selected deductible among drivers is $500. You can choose the amount according to your needs and budget. Make sure you select an amount you can afford, as you would have to pay this car insurance deductible amount when filing a claim. We offer a wide range of auto insurance coverage options like Bodily Injury Liability, Property Damage Liability, Medical Payments, Collision, Comprehensive, Uninsured/Underinsured Motorist Coverage, and many more.

Contact us at Weeks & Associates Insurance Services today for more information on car insurance deductibles. We aim to provide auto insurance solutions that are tailored to meet your exclusive needs.

7 Must-Knows Before Buying Commercial Property Insurance 7 Must-Knows Before Buying Commercial Property Insurance
7 Must-Knows Before Buying Commercial Property Insurance
Riding Safe: Does Motorcycle Insurance Cover Medical Bills? Riding Safe: Does Motorcycle Insurance Cover Medical Bills?
Riding Safe: Does Motorcycle Insurance Cover Medical Bills?
On the Move: Clarifying Homeowners Insurance Coverage for Moving On the Move: Clarifying Homeowners Insurance Coverage for Moving
On the Move: Clarifying Homeowners Insurance Coverage for Moving
Can I return to my regular job while on workers' comp? Can I return to my regular job while on workers' comp?
Can I return to my regular job while on workers' comp?
The Consequences of Non-Payment: Auto Insurance After Cancellation The Consequences of Non-Payment: Auto Insurance After Cancellation
The Consequences of Non-Payment: Auto Insurance After Cancellation