There are many different components of car insurance. The driver should pay attention to these. Some want to go beyond purchasing the basic insurance. For them, there are other segments of the insurance to consider. Many individuals go for comprehensive insurance coverage as well as collision. When they do this, they will have deductibles. These can be confusing
What Are Deductibles?
Deductibles are part of the comprehensive insurance. Comprehensive insurance covers different insurance needs. These needs are outside of collision damage. Comprehensive insurance is applicable for…
- Disasters that happen as a result of nature
- Damage caused by a fire or explosion
- Theft of the vehicle or if it becomes vandalized
- The damage that comes from an impact with animals
- Windshields at that have become broken or cracked
- Objects falling on the vehicle that creates damage
For this type of insurance, the insurance companies will ask for a deductible. What this means is that the insured has to pay for a part of the damage. The damage that comes under the comprehensive insurance coverage. The amount may differ according to the specific type of coverage. It is about the threat of the damage. Each insurance company will set their amounts for this.
When Is The Deductible Paid?
It is the individual owner of the vehicle that will be responsible for paying the deductible. They pay this to the company doing the repairs. What the insurance company will do is they will assess the amount of the claim. Then minus the deductible, they make a payment to the driver for that amount. It is then up to the driver to take on the responsibility for getting the vehicle fixed. Also, for paying for the repairs. The payment in part comes from the payment of the insurance company. Plus, it is the driver’s responsibility for the balance which is the deductible.
What Happens If You Can’t Pay The Deductible?
The driver has to pay their part of the repair cost. As it pertains to the deductible.
It could be $ 500 or even $2,500. The insurance company will pay the driver the amount of the balance owed. They will do this after deducting the deductible. The driver can decide not to fix the vehicle. Or only have a part of it fixed.
Being Selective In The Repairs
Most often part of the repairs that are necessary is for the look of the car. The focus is to return it to its pre-damaged state. Part of the costs incurred in the repair is part of this. Drivers may opt to have just the operating components of the vehicle repaired. It leads to the aesthetics of the vehicle still needing attention.
But, at a later date, the driver could then opt to have this taken care of. For example, the hood of the car could have received damage from a fallen tree. The deductible for this type of accident may have been $500. Yet, the total cost of repairs is going to be $1500. It would include the painting of the vehicle.
Repairs In Segments
To have the repaired hood match the rest of the car, it might need a partial paint job. The driver could opt to have the hood repaired such as removing the dents. But could then leave the paint job until it is affordable. By doing it this way, one gets the chance to make up the difference of what the final repair is going to cost. It is important to make sure that all the mechanical aspects of the vehicle are attended to. For the vehicle to be compliant when on the road.
Being Selective With The Repair Shop
Quite often insured individuals don’t realize what the deductible means. As a result, they will shop around for some of the more expensive repair shops. They are expecting the vehicle will receive better work. It is going to cost more. Yet, if one goes with a more reasonable priced shop, some negotiations may be possible. The repair company may be able to use to refurbished parts and materials. It would help to reduce the cost of the repairs to some degree.
Another option is to have the major repairs done. Then for the minor ones, the driver may be able to do them themselves.
Not doing the repairs may be another decision that is Perhaps the car is going out of commision for a while. Then the insurance company needs a notification about this. Also, it may require cancellation of the insurance.
It is possible to talk to the insurance company about the problem of not being able to pay the deductible. It might be that they can give some suggestions about the best way to go about this.
Choosing The Right Deductible
There are two ways that people look at their deductibles. Some people prefer to have a lower deductible. It can help with the problem of not being able to pay it when the time comes. When doing this, it usually means that that the premiums are going to be higher.
Then there are other people who assume that it’s not likely they are going to have to use their deductible. In these cases, they will opt to go for the higher deductibles. They do this believing they are going to save money on their premium.
What one may want to do is make a comparison of what the premiums would be for the different deductibles. This way it may be that it would be worth the extra payment for the premiums. They could do this to have the low deductible. One should factor in the likelihood of facing any of the situations that comprehensive insurance covers. If one lives in a high-risk area, then it might be worth paying the extra premiums. That way it would reduce the deductible.
Deductibles are a good option. They can help to reduce the cost of premiums. These deductions have good advantages if used properly.