How Does a Car Insurance Deductible Work?
If you’re shopping for affordable car insurance, or finally have to use yours, understanding how deductibles work is an important piece of the puzzle. Read the following post by CarTek Collision for more information on car insurance deductibles and how to find the right deductible amount for your needs.
Car Insurance Deductibles 101
A car insurance deductible is a part of your insurance agreement that states how much money you are responsible to pay when you file a claim, prior to your insurance company covering any costs.
For example, if your deductible is $600 and you get into a pretty serious accident and the resulting repair costs amount to $1,500, you’re responsible for paying the first $600 while your insurance company will pay the remaining $900.
Here’s another scenario: Let’s say you get into a minor fender bender with another car and file a claim. If damages result in $200, you are still responsible to pay your deductible of $600.
The higher the car insurance deductible amount you agree to pay, the lower your annual premiums will be. On the flip side, agreeing to pay less when you file a claim means that your monthly insurance payments will be higher.
Choosing the Right Deductible Amount
Going with a high deductible in order to get a lower annual premium isn’t necessarily the right move. You want to make sure that the deductible amount that you decide on won’t put your personal finances in jeopardy should you have to pay it.
Because your deductible amount will need to be paid every time you file a claim, you should also consider your accident history.
If you live in a busy city and getting into fender benders is a regular occurrence, a lower deductible is going to be the better fit for your situation. Since, as you saw above, when the cost of damages and losses for a claim doesn’t come close to the amount of your deductible, you still have to pay the full cost each time.
Have more questions? Head over to our car insurance FAQ page for answers to common questions about car insurance.
How to Choose Insurance Deductibles
Need a Local Auto Repair Center You Can Trust?
Knowing the ins and outs of car insurance can be confusing, especially if you haven’t taken the time to learn more until you’re in an accident. If that’s the case, it’s important to take your vehicle to a local repair facility that has insurance-fluent appraisers on staff.
Quality repair centers, like CarTek Collision in Los Angeles, have dedicated I-CAR Gold Class certified specialists who will work with your insurance company to make sure your claim moves along and that you get the maximum amount of coverage that your policy allows. Taking the stresses of understanding car insurance off of your plate during this already stressful time is key.
Eagle Rock, Los Angeles, Pasadena and Glendale area drivers seeking repair services for their vehicles can contact CarTek Collisiontoday for everything they need post-accident from 24-hour towing to professional appraisals, body work estimates, and top to bottom restoration services.