Talking With Insurance Companies

If you've ever had an insurance policy before, you probably know something about deductibles, but you might not know enough about them. Are you looking for an auto insurance policy right now? If so, you might want to know if you'll need a deductible, how much to choose, and how it works. Here is a guide to help you learn the answers to these questions.

What is a deductible?

You might encounter an auto accident while driving at some time in life. If you do, you can file a claim for coverage. If your insurance company pays the claim for your vehicle's repairs, they'll only pay a portion of the repair bill. You'll be responsible for the remaining balance, which is the deductible. Insurance companies require that customers pay their deductibles first, then the insurance company pays the rest. So the only time a deductible affects you is if you file a claim that requires your insurance company to pay repairs for your car.

Do all auto insurance policies have deductibles?

Many people wonder if all auto insurance plans have deductibles, and the answer is no. You will not have a deductible on your policy if you have liability coverage only. Liability coverage doesn't pay for repairs your vehicle needs, so your insurance company will never have to pay a repair bill for your car. As a result, you wouldn't have a deductible. However, your plan will have a deductible if you have collision or comprehensive coverage.

How much should you choose?

You can choose your deductible, but you might have to follow your auto loan lender's rules. Auto loan lenders require carrying collision and comprehensive coverage, and they typically have rules about the deductible amounts. You'll need to ask your lender to learn what these are.

What impacts will it have?

Your deductible amount affects your policy and bank account. First, a low-deductible policy costs more than a high-deductible policy. So you'll save money by raising the amount. However, you'll pay more after a claim if you have a higher amount. On the flip side, you'll save money after an accident with a lower amount.

Find the right auto insurance provider

Now that you understand more about deductibles, you'll need to find the right auto insurance provider for your auto insurance plan. Are you ready to start looking for one? If so, contact a company of your choice to request a free quote.

For more information, contact an auto insurance company near you.