What Is an Auto Insurance Deductible?
An auto insurance deductible is part of the process of getting auto insurance coverage. In addition to paying your auto insurance premium monthly, quarterly, or annually, you will also have to pay an auto insurance deductible in the event that you have to file a claim. You select the amount of your auto insurance deductible at the start of your policy.
Other People Are Reading
-
Definition
-
An auto insurance deductible is a specified amount of money that you agree to pay your insurance company if you file a claim for damages before your policy will pay the claim. The deductible amount is usually subtracted from the total amount of your claim and then you are given the remaining amount to cover your damages.
Costs
-
Auto insurance deductibles vary depending upon how much you want to pay out of pocket for it. Deductibles typically range anywhere from $0 to $2,500. However, keep in mind that the lower your deductible the higher your auto insurance premium will be and the higher your deductible the lower your premium will be.
-
Coverage
-
Auto insurance deductible payments take care of a variety of events and damages. They cover physical vehicle damages and accidents, medical payments, and rental car payments.
Misconceptions
-
You only have to pay a deductible if you get comprehensive and collision auto insurance coverage. Deductibles do not apply to liability only coverage options.
Warning
-
Choose an appropriate auto insurance deductible so that in the event that you need to file a claim, you will at least have enough money left over to cover your damages.
-
