A car insurance deductible is the amount of money you pay upfront when you file an insurance claim. When the deductible is paid, the insurance provider kicks in to cover the costs of damage repair that goes above and beyond the deductible.
Here are some fast facts about insurance deductibles that might come in handy. If you have already had an accident, (click here if you need a body shop) you’ll probably be familiar with the info. Even if you’ve been a lucky (or model) driver, knowing the following won’t hurt.
A practical example
You’ve had an accident and the repair will cost you $1,500. If your deductible is $1,000, that’s how much you pay, while your insurer pays $500. If you have the same deductible, but the repairs come up to $900, then the insurer doesn’t pay anything, because your deductible covers the repair.
Bear in mind that if the repairs turn out to cost more than the maximum amount covered by your policy, you’ll have to pay the deductible, plus anything above your maximum coverage amount.
Deductibles and premiums
When you choose a high deductible, your monthly premiums will be on the lower side. Conversely, a low deductible involves higher premiums. From another perspective, a high deductible carries more risk when filing a claim.
Are deductibles the same for all types of damage/ repair?
No. Deductibles are highest for collisions. They are much lower for vandalism damages or hitting an animal, for example. However, it all depends on what type of policy you take.
Do you always pay the deductible?
Let’s see: you do when you get into a car collision because of your own fault; when you file a comprehensive claim, e.g. because you hit a deer: when you are seeking cash compensation because your car was stolen, vandalized or taken for joy-riding but returned with damages.
Basically, you ALWAYS pay the deductible. If the other party in the collision was at fault, it sometimes happens that their insurer agrees to reimburse your deductible. If your insurance company doesn’t manage to make the other insurer do that, you can still take the other driver to court.
In addition, there are some policies that don’t require a deductible if you need windshield replacement or repair.
Do you pay the deductible even if the car is totaled?
As we said, you always pay the deductible. If your car was totaled, your insurer will pay you the value of your car, minus the deductible.
Auto body repair Los Angeles
If you need auto body repair in Los Angeles and you have some concerns about your deductibles and the costs, feel free to call King Collision Center right away. We are always available for your questions. Check out our reviews – they will confirm that we have earned to be called kings of repair because of our premium workmanship and outstanding customer care. Call us and have your car problems fixed!