Auto Insurance Deductible Limits
Posted by: info | June 30, 2007
Auto insurance companies have come up with many different deductibles for good reasons. Now an auto insurance consumer can choose a deductible for uninsured motorist property damage, comprehensive and collision. A deductible is the amount of money the driver is responsible for. How can deductibles determine auto insurance rates?
Deductibles are often mention on our website. They play major roles in factoring the cost of auto insurance for a driver. Many drivers accept a high deductible without knowing what it means. These drivers are just trying to save money. This post will teach drivers about deductibles.
Uninsured motorist property damage deductible: This deductible in most cases is low cost. This will not play a major role in factoring auto insurance cost and is not used in all states. This deductible will be the money a driver is responsible for from property damage caused by an uninsured motorist.
Comprehensive deductible: This is the amount a person is responsible for from a comprehensive claim. This is only available to drivers with full coverage insurance. This type of deductible would be used for a chipped or cracked windshield, hail damage, dents and damages not caused by a collision. This deductible should be set low if possible. If a driver needs to repair small damages, the lower the deductible the better the benefits. The lower this deductible is, the higher the insurance rates will be.
Collision deductible: This is the amount a person is responsible for in the event of a collision, accident or wreck. This is only available to full coverage drivers. This is the amount a driver will have to pay to get vehicle repairs for an at-fault accident. This is another deductible that can increase insurance rates. However, a driver has much more control over this type of claim. This deductible should be the same or higher than the comprehensive deductible.
A higher deductible will lower insurance cost. However, a higher deductible is not always better. If a driver can’t afford to pay the deductible, the insurance can’t be used. Before choosing a 1k deductible, consider how much money will be saved over a smaller, more affordable amount. A smaller amount would be great for people living on a tight budget.
Posted in: Insurance, General |
Comments
You must be logged in to post a comment.