When Do You Pay the Deductible for Car Insurance?
Car insurance deductibles can be quite tricky to navigate. the answer to when you pay is relatively simple. you have to pay a deductible every time you make a claim on your auto insurance. The deductible is an agreed-upon amount you must pay out of pocket each time you make an insurance claim before the insurer covers the cost of the damage. Since the deductible is considered first, you must pay it for each claim you make as long as the damage reaches or exceeds its amount, as explained by PolicyGenius. When exactly is the car insurance deductible paid? learn everything you need to know about paying deductibles.
how do deductibles work?
A car insurance deductible is what you have to pay out of pocket to cover damages from an accident before the insurance company covers anything. For example, if you have a $500 deductible, you’ll have to pay that $500 out of pocket before your insurer puts a dime to cover the damage. There is also no annual deductible to meet. the agreed-upon deductible applies each time you file a claim.
Reading: How do you pay a deductible for car insurance
There are some cases where your deductible will cover the full cost of the damage, according to the progressive. Imagine you have a $1,000 deductible with your policy and you have an accident that causes $900 worth of damage. Your deductible exceeds the cost of the damage, so you’ll have to pay it all out of pocket. With that same deductible, imagine you have an accident that caused $1,100 worth of damage. in that case, your insurer would pay you $100.
Deductibles are typically only attached to certain types of insurance, such as comprehensive and collision. liability insurance does not have a deductible, and personal injury protection often does not have a deductible, but may in some states. No matter what type of auto insurance you have a deductible for, they’ll all work the same.
When it comes time to pay a deductible, you only have to make an effort if your deductible is greater than the full amount of damage sustained. that effort would be directed toward whatever services you need to repair the damage without strictly involving your insurance company. they would simply deny you coverage in that scenario. If the damage exceeds your deductible, your insurance company will write you a check for the full amount of the damage less your deductible.
what is a good deductible?
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There is no single answer to what qualifies as a good deductible. it all depends on the type of benefits you want from your auto insurance and your overall budget. There are a few general rules to keep in mind that can help you decide what type of deductible works best for your needs.
In general, a lower deductible means you’ll pay more for your insurance premiums. This is because your insurer will have to pay more in the event of an accident. if you opt for a higher deductible, your insurance premiums tend to be lower. Consider how much you are willing to pay out of pocket in the event of an accident. the average deductible is around $500, which is a middle ground, but can range from $100 to $2,000 depending on policygenius.
what coverage requires deductibles?
Liability insurance may not require deductibles, but other types of auto insurance do, according to esurance. uninsured motorist coverage may require a deductible, but comprehensive and collision insurance almost always do. That deductible is typically around $500 to $1,000 and applies when your vehicle is in an accident and sustains physical damage that must be repaired regardless of fault.
Comprehensive coverage protects you from damage to your car when you’re not driving, such as falling objects, extreme weather and vandalism. be sure to consider comprehensive coverage if you drive any of these commonly stolen cars and trucks.
Fortunately, there are some cases where you don’t have to pay your deductible. It is important to consider these scenarios when calculating the appropriate steps to take after an accident. These are the most important deductible exceptions:
- Another driver is at fault: If the other driver is at fault for the accident, you may not have to pay your deductible or anything at all. you could have damages covered by your insurance or their insurer should they decide to seek reimbursement from the other driver. the cost of the damage and your deductible would be fully covered for you.
- Liability Claims Against You: If another driver files a claim against your liability insurance, you don’t have to worry about paying a deductible out of pocket since liability coverage doesn’t treat with deductibles, as progressive explains. however, he may not be fully covered if the damage exceeds the limits of his liability policy.
- Glass Repair: In most states, insurance providers like Progressive will offer free glass repairs, although windshield glass is a complex problem in its own right. Since these are repairs rather than replacements, they don’t go through your insurance policy, which means your deductible doesn’t come into play.
how to deal with deductibles
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Deductibles are simply an unavoidable aspect of many types of insurance, but they shouldn’t stop you from getting the repairs you need after an accident. To get your repairs taken care of in a timely manner, it’s always best to file a claim against your own auto insurance policy, assuming you have adequate coverage, according to HPM Insurance. keep in mind that this is the best course of action, regardless of who is at fault for the accident.
When you are involved in an accident that is not your fault, you still need to file a claim with your own insurance company. His insurer will always want to pay the least amount of money possible, so if they find out he’s not at fault, they’ll seek reimbursement from the other driver’s insurance company. This reimbursement is especially helpful since the amount covers your deductible. just remember that you will only have your deductible covered if your insurer can obtain coverage for the full cost of the damage from the other insurer.
With these factors in mind, you can find a policy deductible that best suits your driving needs from a provider like Progressive. Don’t forget, the more time you spend on busy roads, the more likely you are to eventually pay a deductible.
Information and research in this article verified by ASE Certified Master Technician Duane Sayaloune of yourmechanic.com. For any feedback or correction request, please contact us at [email protected].