If you are a home or vehicle owner, you are likely an insurance policy holder! Monthly insurance costs can certainly add up, but they are necessary to ensure that you will be protected in the case of an accident! When you purchase a policy from an insurance carrier, you typically set a deductible amount that you will be expected to pay before the insurance kicks in. The higher your deductible, the lower you monthly payments! Before settling on an insurance policy, it is crucial to completely understand your deductible.
When you set your deductible, you can choose to either deduct a percentage of the insured amount, or set a dollar amount. If you choose to set your deductible at $300, and you experience a loss of $900, then you will be responsible to pay $300 while your insurance carrier compensates you for $600. If you use a percentage deductible, such as 2%, and you have $10,000 of insurance, your deductible would be $200.
Depending on where you live, your carrier may require that you set your deductible high. It is important to remember that you must be able to afford your deductible in the case that you need to make a repair. Also, keep in mind that if you need to file a liability claim, your deductible will not apply! Its use is more for property damage. Your deductible will be explained on the declaration page of your insurance policy.
If you are interested in further insurance advice from a qualified and experienced agent, please contact Weeks & Associates Insurance Services, located in Thousand Oaks! We are one of the top independently owned full-service insurance agencies in the state, and take pride in our excellent individualized customer service. Give us a call with any insurance inquiries you may have, and we will gladly administer the insurance counsel you need!