If you have a car or home insurance policy, you may be familiar with the term 'deductible', but do you know what it really means?
An insurance deductible is the amount you pay before the insurance company pays a claim.
Deductible Amount – Should It Be High Or Low?
A higher deductible will decrease your insurance premiums because you are assuming a larger portion of the loss. For example, $1000 deductible means you will pay the first $1,000 of damage, and will only put a claim in if damages exceed this amount. Conversely, a deductable of $500 means you are assuming a smaller portion of the loss, and therefore the insurance company will be paying more.
With the sophistication and technology in cars today, we suggest $1000 deductibles to many of our clients. It doesn’t take long for the repair bill to reach $1,000, and you also get the bonus of lower insurance premiums. The same is true for home insurance
Is The Deductible Ever Waived?
A car insurance deductible may be waived if you are found to be not at fault for the accident and if the driver of the vehicle who hit you has verifiable insurance. In this instance, a claim can be entered even if damages fall below your deductible amount – you will not be responsible for the payment of any portion of the damage to your ca