What If I Can't Pay My Car Insurance Deductible Right Away?
An auto insurance deductible is the cost the policyholder must pay out of pocket for each and every physical damage auto claim. Deductibles can be as low as $100 or as high as $1,000. The amount of the deductible depends on the type of vehicle insured and how much the policyholder can afford to pay.
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Claims Process
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Once you have a comprehensive or collision auto loss and you've reported it to your insurance company, the company sends out an adjuster to access the loss. The adjuster evaluates the damage, determines how much it will cost to repair or replace the damaged item and then checks the figures against the insurance policy. The adjuster checks to see if you have adequate limits and coverage to cover the loss and how much of a deductible you're responsible for. After the final amount is determined, the insurance company issues a check for the cost to repair the damage minus the deductible.
Repairs
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If after you receive the claim check from the insurance company you do not have enough money to cover the deductible gap, you have a few options. You can either put the repairs on hold until you come up with enough money to fully pay for the damage, perform only some of the repairs or negotiate a lower price with the repair shop. As far as the insurance company is concerned, it lived up to its end of the contract by issuing the claim check. Once you have received and cashed the claim check, the company is no longer responsible for financing that loss.
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Funding the Deductible
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When you first purchase an auto policy, if you believe coming up with the deductible amount will cause financial hardship, you should obtain quotes from the insurance company for lower deductibles. Alternatively, you can put money away in a savings account only to be used for the specific purpose of funding the deductible. This will prevent you from disrupting your monthly budget in the event of a loss.
Consequences
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Not being able to fund the difference between the claim check and the deductible becomes is more of an inconvenience to you than a violation of an insurance contract. If your mechanic is not willing to complete the work and release the vehicle until the bill is paid in full, you will have to find a way to come up with the difference in order to get your car back on the road again.
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