Knowing your car insurance deductible is extremely important, especially after you get into an accident. Deductibles range in price depending on the policy that you have set up with your insurance company. The easiest and quickest way to check your insurance deductible is to read over your insurance agreement. However, if you don’t want to read, you could also give your insurance company a call and ask them how much your insurance deductible costs. Probably the worst way to find out your insurance deductible is to get into an accident and call your insurance company. This is money that you should probably leave aside in case an accident occurs. Whenever possible, you are going to want to be able to afford to make a claim or buy a new vehicle. Otherwise, you might be left with nothing to drive.

What Is The Deductible In Insurance?

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An insurance deductible is essentially money that you have to pay the insurance company to make a claim. The main reason that an insurance deductible is in place is so that people make fewer insurance claims. It is also so that people have some sort of financial burden when they get into an accident. If insurance companies covered accidents without a deductible, people would likely not be too worried about getting into an accident. An insurance deductible certainly helps an insurance company pay for a claim. However, they will have to pay for the majority of the claim out of pocket.

How Does The Deductible Work For Car Insurance?

An insurance deductible is based on how much risk you are willing to take on. The more risk you are willing to take on, the lower your insurance premium is going to cost you. If you are willing to take on more risk, this means that you are willing to pay out more money to fix your vehicle. This lowers the chances that your insurance company is going to need to step in. For example, if you get into an accident where $1200 in damage is done and your insurance deductible is $1500, you are not going to put this through insurance. As you can likely see, the higher your insurance deductible is, the lower the risk is for your insurer.

What Is A Good Car Insurance Deductible?

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A good car insurance deductible might be different depending on the person. Some people might actually want to have a high insurance deductible. Although this might not be ideal if you get into a car accident, it will make your insurance premiums much cheaper. Generally, you can expect an insurance deductible to be at least $500. However, the more insurance coverage you have on your vehicle, the higher the deductible you might have.

What Happens If I Can’t Afford My Insurance Deductible?

It is not good if you cannot afford your insurance deductible. However, it is not the end of the world. This just means that you will not be able to make a claim on your auto insurance policy. If you already submitted a claim only to realize that you can’t afford the deductible, you are going to have to cancel the claim. This could be very unfortunate depending on how badly your car has been damaged. However, unless you can manage to round up the money for your insurance deductible, that’s about all you can do. Luckily, canceling an insurance claim where the payout was $0 is not going to have a big impact on your insurance.

Can I Get An Insurance Policy Without An Insurance Deductible?

You are likely going to be hard-pressed to find an insurance company that offers insurance without a deductible in the policy. Insurance companies are in the insurance business to make money, not to lose money. Not having an insurance deductible in their policy raises the financial risk for them substantially. It is doubtful, for this reason, that you will find any insurance provider on the market offering a no deductible insurance policy. However, there are some companies that do offer deductible waivers. Generally, these are loyalty waivers for staying with an insurance company for a certain period of time. These can be used to have your deductible waived if you get into an accident.

Do You Have To Pay The Deductible If You Are Not At Fault?

When someone else crashes into your vehicle, you might worry about how this impacts your insurance. Luckily, if the other driver is a 100% at fault for the accident, you are not going to have to pay for your insurance deductible. When/ if you are deemed to be partially or 50% at fault for an accident, you only have to pay a 50% deductible. In the event of a hit and run, you will have to pay the full insurance deductible. This may seem unfair, but in this case, there is no one else to pay for your insurance claim. The same is true if your vehicle is stolen. You still must pay for your insurance deductible in full, even though the incident is in no way your fault.

Does A Not At Fault Claim Raise My Insurance Rates?

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Although it sucks when someone else crashes into your vehicle, there is some good news. Your auto insurance premiums are not going to rise as a result of having to make a not at fault claim. The only way that this could potentially have an impact on your insurance is if you have three or more of these on your record within a given year. This rarely happens, but if it does, the area that you drive in probably isn’t all that safe. Due to this reason, you are likely going to be looking at higher insurance premiums in the near future.

To Conclude

Paying for a car insurance deductible is something that no one likes to do. Having damage occur in an accident is bad enough on its own. Let alone having to pay higher insurance premiums each month and an insurance deductible just to fix up your vehicle. However, everyone in Canada has to deal with this reality. As soon as an insurance company deems you to be a higher risk than other drivers to insure, you can expect to see higher insurance premiums. Due to this reason, it isn’t always worth it to make a claim. However, that is something that you are going to have to decide for yourself when the time comes.

Resources:

https://www.thebalance.com/how-to-choose-your-auto-insurance-deductible-527483
https://www.thebalance.com/insurance-deductible-2645763
https://www.titan.com/auto-insurance-deductibles.jsp
http://www.21st.com/insurance-newsletters/2013/02/how-to-choose-your-deductible.htm
https://www.insurancehotline.com/when-do-you-pay-the-deductible-on-your-car-insurance-policy/
https://www.thebalance.com/can-a-not-at-fault-claim-raise-my-insurance-rates-527469