Insurances.net
insurances.net » Auto Insurance » How Car Insurance Deductibles Work
Auto Insurance Life Insurance Health Insurance Family Insurance Travel Insurance Mortgage Insurance Accident Insurance Buying Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Pregnant Insurance Internet Insurance Mobile Insurance Pet Insurance Employee Insurance Dental Insurance Liability Insurance Baby Insurance Children Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

How Car Insurance Deductibles Work

How Car Insurance Deductibles Work

Having a car insurance is critical to driving on the roads of most states

. They ensure that if something happens, like your car hits another person's car, then both people are covered. Damages, and potentially injuries, are payed for by the insurance companies, so that if the person driving has no money to pay, that's not a problem. Otherwise, there could easily be situations when an accident happens and the other person is left out of luck. But in most policies, there's a deductible specified, cases where you have to pay a certain amount. Let's see how these deductibles work.

Typically, your deductible, also called an excess, is a fixed amount, like $500. This is an amount that the owner of the insurance policy has to pay out of pocket when something happens. For example, let's say you hit a cement wall and your car suffers $900 in damage. Assuming the insurance company decides to pay, which is not always the case if you are responsible for the damage, then you still have to pay the first $500. Then, the company will pitch in with the rest of the money, in this case $400. It's a way for the companies to save some money, and prevent claims for very small amounts.
How Car Insurance Deductibles Work

Deductibles have another effect as well. When you make a claim after an accident, often times your insurance premium will go up. This means that your monthly payment will become higher, because the company determines that you are more likely to have an accident, based on your past history. However, the deductible is taken into account when they decide how much more money you'll have to pay. That's why some clauses specify that you can actually volunteer a higher deductible yourself. For example, if you have $900 worth of damage, it may be advantageous for you to pay $800 as a voluntary excess, instead of just the required $500, so that your premium doesn't go up. That's something you can also discuss with the insurance salesman when you buy your policy. You may get a much lower premium by offering to have a higher excess.

Overall, in many cases there is no way to be completely out of a deductible. It would bring a premium that is much higher than otherwise. Still, it's something to keep in mind. When you drive your car, if something bad happens, you need to have the means to pay the deductible, at the very least. This also includes times when you aren't responsible for the accident. If after negotiation with the other car owner you hit, it's decided that he is responsible, then you still have to pay the deductible at the start, but once the other person's insurance company pays, then you can be reimbursed. These are things you may wish to keep in mind.

by: Casey Trillbar
How To Get The Finest Deal On low interest auto loans? Why Your Auto Detailing Business Needs A Mobile Car Wash Machine Insurers Of Saga Car Insurance Be Thrifty, Take Into Consideration Getting A Used Vehicle With Auto Financing Making Modifications to Your Car? Be Sure To Inform Your Insurer Auto Loan Apr Stacker Trucks Add More Efficiency In Your Workplace General Information About Automotive Defect Lawsuits Motor Fleet Insurance Company Recommend Partnerships With The Fuelcard People F 150 body kits will add value to your automobile Automotive Spare Parts: Add Up To Car Durability The Factors that Greatly Affect One's Car Insurance Rate How An Online Automobile Insurance Planning Can Help You Save Time And Energy
Write post print
www.insurances.net guest:  register | login | search IP(3.238.161.165) Shandong / Jinan Processed in 0.011316 second(s), 6 queries , Gzip enabled debug code: 8 , 2793, 952,
How Car Insurance Deductibles Work Jinan