What You Should Know About Car Insurance Deductibles

Car insurance terminology can be pretty confusing and if you are not accustomed to lengthy administrative and legislative documents, it can give you quite the headache. One of the trickiest terms is “deductible”.  How it works or how much to invest are typical questions addressed by any responsible and money-wise driver. Read our blog to find out more about car insurance deductibles. Also, get free online car insurance quotes from our reliable car insurance providers.

A deductible is the sum of money that you agree to pay out of your own pocket before your car insurance provider starts paying the bills after you have filed a claim. After your deductible is paid your insurer will cover the rest of the costs related to your claim, up to the coverage limits. Deductibles vary by the type of coverage you are buying, and some policies do not even have a deductible. Liability coverages do not have a deductible while coverages such as personal injury protection (PIP) and uninsured motorist may have a deductible depending on the state you live in and the insurer that is issuing the coverage. On the other hand, coverages that handle physical damage such as comprehensive and collision will always have a deductible. It is possible to set your deductible at zero but it will skyrocket your premiums instantly.

Deductibles vary from zero to $2500 if you really want to keep your premium payment low. The most common and popular deductible amounts are $250, $500 or $1,000. If your vehicle is totaled or deemed a total loss, you would receive a check for the value of our vehicle minus your deductible.

The best deductible is one that you can afford but that is high enough that small dents and scratches falls under that limit. While there is no one size fits all when it comes to deductibles, in many cases a $1000 deductible is the best option.

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