How Does An Auto Insurance Deductible Work?
Brenda Hanson PRO
Vice President/Agent, Best Rates Insurance Inc, Kalispell Montana
A deductible is your portion you pay for a claim. Example if you have comprehensive coverage which is deer hail tree and window type of damage if you have a $100 deductible then anything over the $100 the insurance company will pay.
In our state with most carriers the difference between a $100 deductible and a $500 deductible is only about $3 difference a month and most glass shops waive the deductible and rock chips are free. Your NOT saving any money in the even of a higher deductible unless you just happen to have $500 handy in the even of a loss. Also Many carriers it does not effect your rates on a comprehensive claim.
Now collision deductible $500 is the standard so if you cause the accident your responsible for the first $500 worth of damage. Example you back into a tree and cause a $1000 worth of damage to your car then the insurance company will hand you a check for $500
As stated a above by MR. Ratliff a "good Agent" won't report it I beg to differ Reporting it will NOT raise your rates as much as it would cost
to repair it less your deductible. this may be the case in other states but here in Montana this is in most cases it is better to file the claim then pay for it yourself.
A HONEST agent will discuss your options on what works best for you and a dedicated agent like our agency has who personally answer the phone 24/7 will tell you what it may or may not do to your rates. In any event contact your agent and they should be able to tell you what works best for you .
Also the deductible applies in the event you are hit by someone who has no insurance. So if you are a victim of a hit and run your deductible will apply also. Every state has different laws and rate factors. Sit down and have your agent discuss what works best for YOU! If you already are on a tight budget and in the event of a loss that higher deductible may not be in your best interest.
Many Body shops are willing to work a pay plan on the deductible portion but it is much easier to pay $500 then a $1000. Talk to your agent
Answered on April 10, 2013Source: www.insurancelibrary.com