How auto insurance deductible work?

If you have a car insurance, you have a protection on the road. Now, what will happen if you crash another car? You file a claim and your car insurance will pay for the damages. However, before your car insurance hands over you need to pay a deductible. How auto insurance deductibles work?

Do you need help with your insurance deductibles?

Your deductibles are the amount of money you agree to pay after a covered loss. When getting a car insurance with you will be able to set a type of coverage and deductibles that works best for you. It doesn’t matter if you have a full coverage car insurance, you always have to pay a deductible in case you are found responsible in a car accident. But how does it work? And usually, how much are the car insurance deductible amounts?

What is a deductible in auto insurance

In case you get involved in a car accident, your car insurance will cover the damage depending on your insurance coverage. When this happens you will need to know how auto insurance deductibles work because it is the amount of money that will come from your pocket expenses before your car insurance pay the remaining. 

You can find your deductibles on your insurance policy and should be clear when you are getting an insurance quote. The auto deductibles can be in your insurance policy as dollar amounts or a percentage.

When will you need to pay auto insurance deductibles?

Don’t have to pay auto insurance deductibles if:

  • Your liability insurance will not require you to pay a deductible. Have in mind that a liability coverage only covers the costs for the other drivers injuries and damages on property. Just having a liability insurance makes you responsible for the reparations of your car. 
  • If the other driver is found at fault in the car accident, you may not need to pay a collision deductible. In that case, the other driver’s insurance is the one that have to cover your car damages. Have in mind that there are tons of people driving without insurance, that’s the reason you should consider get an uninsured motorist coverage.

Have to pay auto insurance deductibles if:

  • If you have a collision Insurance it will cover your car expenses from accidents with other cars. You just will pay your auto insurance deductibles. Under other conditions, if your car requires repair from an accident that your insurance does not cover, you will pay the whole amount. 
  • If your car has comprehensive coverage. Your car can be damaged by so many ways: theft, vandalism, natural disaster or even a deer on the road. In those scenarios you will need comprehensive coverage. With this type of auto insurance you just pay your deductible for comprehensive.

How Auto Insurance Deductibles Work – Deductibles and Insurance Premiums

Before choosing your deductibles you need to know that your auto insurance deductibles will affect your insurance premiums, how? Let’s think that you get a low deductible of $100 which is the amount you will need to pay in case of a car accident. For your insurance to pay the rest your premiums must be high.

It also means that a higher deductible will allow your insurance company to offer you lower premiums, as you assume responsibility for a larger amount of loss.

A high deductible saves money in your insurance premiums. On the other hand, make sure to choose an amount or percentage you will be able to pay in case you found responsible for a car accident. Need help to choose a car insurance deductible? We make it easier for you to get an affordable car insurance, contact us