What are car insurance deductibles?


When we are talking about car insurance policy, we always encounter the word deductible. In fact, deductibles are one of the most overlooked components of car insurance. Usually, when talking about insurance policies, we tend to focus on premiums and coverage. Especially when one is looking for the most affordable and quality car insurance policy, we tend to focus on discounts, or cheap premiums, or the most extensive and comprehensive coverage available that will suit our needs. Some people that overlook deductibles actually fall into the trap of availing the cheapest premiums available, only to be disappointed when emergency or accidents come because of high deductibles to be paid.

Car insurance does not only concern the amount that they will spend in case of emergency. Actually, in every accident or other cases involving insurance claims, you will always pay a part of it. That’s what deductible is all about. It is the amount that you are willing to pay for the coverage that your insurance policy gives. Technically speaking, insurance deductibles are the part of your insurance policy that you are responsible to pay for. The amount of your deductible varies from state to state, and is also dependent upon the car insurance policy that you got. For example, when you have high premiums, it is very likely that you are responsible to pay for lower deductibles. Likewise, low premiums tend to have high deductibles with it. Usually, deductibles are amounting to $100, $250, $500 and $1000. For example, when you are involved in a car accident, and the damage caused amounts to $2000, when your deductible is $1000, the insurance company would pay $1000, and you are responsible to pay for the other $1000.

Of course, choosing the right amount of deductibles is dependent upon your needs and preferences, and on the insurance company that gives you your insurance services. It is an important step to consult your budget, and choose the insurance policy that would have enough coverage and at the same time, offer reasonable deductibles. You must not overlook this fact, remember that every time you are going to be involved in a car accident or in similar situations, you are required to pay your deductibles anyway, so don’t take a chance. Consult your budget and be aware on how much you are willing to pay out of your own pocket in cases of emergency. If you think that you are likely to often file claims or are likely to be involved in accidents, it is wiser for you to take an insurance policy which requires lower deductibles to be paid.