What Is An Auto Insurance Deductible

For example imagine that you have a 500 deductible and a claim for 1 500 to repair your car after you hit someone s mailbox.

What is an auto insurance deductible. For example if you re in an accident that causes 3 000 worth of damage to your car and your deductible is 500 you will only have to pay 500 toward the repair. What is a deductible. The higher your deductible the lower your auto insurance rates. Picking your auto insurance deductible is a highly personal decision.

This is where an insurance deductible comes in. So if you hit someone else at a red light your insurance will pay the entire cost up to your coverage limits of repairs to the other driver s vehicle. It is really up to you to weigh your choices and determine the best option for you and your family. A car insurance deductible typically applies only to the parts of your policy concerning damage to your property.

Auto insurance companies don t want to take all the risk by themselves when you get behind the wheel. The reason for this is that you are assuming more risk that is you are taking on more risk because if you get into an accident you will need to pay more out of pocket than if you had chosen a lower deductible. How car insurance deductibles affect rates. The deductible on the other hand is an amount that is only owed by you in the event you have an approved insurance claim.

A car insurance deductible is the amount of money you ll pay out of pocket before your insurance company pays the rest of a claim up to the policy s pre set coverage limit. Car insurance deductibles explained. Here you ll learn the basics of insurance deductibles including what they are how they work and how much they cost. An insurance deductible is the amount of money you will pay an insurance claim before the insurance coverage kicks in and the company starts paying you.

There are many car insurance deductible options available whether you. A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest. Liability coverage has no deductible. An auto insurance deductible is what you pay out of pocket on a claim.

Rates and deductibles are inversely related. A car insurance deductible is the amount of money that you pay out of pocket before your insurance provider covers damages after an accident or other event. It s one of the most common car insurance questions and may be the easiest to answer.