Car insurance deductibles can be tricky to navigate, especially if you’re purchasing auto insurance for the first time. In the article below, CarTek Collision explains everything our customers in Eagle Rock, Los Angeles, Pasadena and Glendale need to know about car insurance deductibles after filing a claim.
What’s a Car Insurance Deductible?
If you were involved in an accident, an insurance deductible includes the repair costs you’re responsible for covering out of pocket before a car insurance company pays for the rest of the damage. Most automotive insurance policy deductibles are on a per claim basis, which means you have to pay your deductible anytime you file an insurance claim.
For example, if you were involved in an accident that caused $2,000 worth of damage to a car and your deductible is $400, you only have to pay the $400 for the proper repairs. Your insurance company covers the remaining $1,600.
Typically, higher deductible policies have lower annual premiums, allowing most people to save money in the long run. Just make sure that you a find a deductible you can afford. You can talk to your insurance agent if you have any questions about how your deductible will affect your monthly premium.
What Kind of Coverage Is a Deductible Applicable Toward?
Typically, car insurance deductibles are applicable toward two types of coverage: collision coverage and comprehensive coverage.
If you were involved in an accident with another vehicle or an object, collision coverage pays for the damage to your car along with any replacements or repairs you require. It doesn’t cover the cost to the other party’s car or property, though.
If your vehicle is damaged but wasn’t involved in a collision, comprehensive coverage pays the repairs if you weren’t at fault. Damage caused by fallen tree limbs or hail, for example, would be taken care of with comprehensive coverage.
How Should I Choose My Insurance Deductible?
When buying insurance deductibles, take a look at your annual income, household budget, savings, and credit to figure out how much you can pay without causing too much of a financial burden. You want to find a policy that will cover your repairs without causing too much stress on your bank account. It’s important to find an insurance deductible you can afford or the repairs for your car could be too expensive to pay for after an accident.
After you’ve figured out how much you can afford to pay for a deductible, you can check with your insurance agent to find a policy that’s right for you.
Talk to CarTek Collision About Post-Accident Repairs and Deductibles
At CarTek Collision, we accept all major insurance companies for our customers in Eagle Rock, Los Angeles, Pasadena and Glendale who were involved in a car accident. If you have any questions about how much repairs will cost with your insurance deductibles, give us a call at 323-255-7711 to speak with one of our I-CAR Gold Class certified automotive technicians or schedule an appointment.
Car Insurance Deductibles 101