Car Insurance Deductibles in 2019: Understanding the Rules

While the saying “a penny saved is a penny earned” holds true, car insurance is far more complex. Understanding the terms, especially deductibles, is crucial to protecting your interests in case of an accident. This article will provide a clear understanding of car insurance deductibles in 2019.

What is a Deductible?

A deductible is the amount you pay out-of-pocket for a covered claim before your insurance company pays the remaining expenses. It acts as a safety net, preventing insurance companies from handling minor, insignificant claims.

Example: If your car insurance policy has a $200 deductible and you get into an accident resulting in $500 worth of damage, you’ll pay $200, and your insurance will cover the remaining $300.

Common Deductible Questions

How are Deductibles Determined?

Deductibles are outlined in your insurance policy and often offer several options:

• Fixed deductible: A set amount you pay for each claim, regardless of the total damage.
• Percentage deductible: A percentage of the total damage cost that you are responsible for.

How to Choose the Right Deductible?

Choosing the right deductible depends on your needs and financial situation.

• Low deductible: You’ll pay less out-of-pocket for claims, but your insurance premiums will be higher.
• High deductible: You’ll pay more out-of-pocket for claims, but your insurance premiums will be lower.

How Does a Deductible Affect Insurance Premiums?

Your deductible directly impacts your insurance premiums. A higher deductible typically results in lower premiums, and vice versa.

Common Scenarios Involving Deductibles

• Minor accidents: With a high deductible, a minor accident might require you to pay more out-of-pocket than the repair cost itself.
• Major accidents: With a low deductible, a major accident will reduce your out-of-pocket expenses, but your overall insurance costs might be higher.

Choosing the Right Deductible

• Assess your financial situation: Consider your ability to cover the deductible in case of an accident.
• Analyze your driving habits: Frequent drivers are more likely to file claims, potentially benefiting from a lower deductible.
• Consult with an expert: Seek professional advice from an insurance expert to determine the best deductible for your specific needs.

Frequently Asked Questions

• What is a reasonable car insurance deductible?
• How can I lower my car insurance deductible?
• Should I buy car insurance with a low deductible?

Other Car Insurance Products

• Liability insurance
• Collision insurance
• Personal injury protection (PIP)

Car insurance deductible concept

Call to Action

Still unsure about car insurance deductibles? Contact us for a free consultation!

Conclusion

Understanding car insurance deductibles is vital for protecting your financial interests. Choose a deductible that aligns with your needs and budget to avoid unexpected financial burdens. Share this article with friends and family to spread awareness about car insurance.

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