A zero deductible car insurance policy is one of the rarest insurance policies on the market. An insurance deductible is essentially money that you have to pay an insurance company when you get into an accident. If you happen to get a zero deductible insurance policy, you are not going to have to pay any money to your insurance company if you need to make a claim. To people who don’t have a whole lot of money, this might seem like the ideal insurance policy. However, in order for an insurance company to be able to offer a zero deductible insurance policy, they are likely going to charge you a higher monthly premium.

When Do You Normally Have To Pay An Insurance Deductible?

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With a regular insurance policy, you will usually have to pay an insurance deductible in order to make a claim. Usually, you are going to have to set a deductible amount with your insurance provider. The deductible must be set for both collision coverage and comprehensive insurance coverage. When you get into an accident and the damage done costs more than your insurance deductible, this is when you usually make a car insurance claim. However, with a zero deductible car insurance policy, people are more likely to make car insurance claims. This makes the risk of financial loss for an insurance company much greater.

Does Everyone Have Insurance Deductibles?

If you just have a basic insurance package that only covers liability, you actually won’t have an insurance deductible. Liability is the one type of insurance coverage that you don’t have to worry about an insurance deductible for. Adding anything else to your insurance and making a claim for it is probably going to cost you an insurance deductible. For example, some insurance providers offer glass replacement for broken windshields. An insurance deductible for something like this could be something like $25.

Is It Worth It To Get A Zero Deductible Insurance Policy?

Generally, unless you get into a couple accidents, it probably is not worth getting a zero deductible insurance policy. The amount you’re going to be paying in insurance premiums in order to be able to hold this policy will be high. You do not necessarily have to get a policy that has a high insurance deductible. There are plenty of policies available that have deductibles as low as $500. Even having a deductible that is low will have a massive impact on your monthly insurance premium. With a zero deductible insurance policy, you might not owe anything if you if you get into an accident. Keeping a regular car insurance policy, though, is more likely to save money.

How Does My Insurance Deductible Change My Insurance Rates?

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An insurance deductible actually has an extremely large impact on your insurance premium. The higher deductible you have, the less likely your insurance company is going to have to pay on a claim. You’re going to have to really damage your vehicle in order to have to make an insurance claim. Even when this occurs, your insurance company will receive that high deductible from you. This should help to pay for some of the damage that was done to your vehicle.

When Does An Insurance Deductible Apply To An Insurance Claim?

It isn’t every insurance claim that you’re going to have to pay an insurance deductible. When it comes to a collision claim, if you’re found responsible for the collision, you’re going to have to pay an insurance deductible. However, if you’re found not to be at fault for the collision, you’re not going to have to pay an insurance deductible. Generally, if you are found partially at fault for an accident you’re only going to have to pay part of your insurance deductible as well. When it comes to comprehensive insurance, unfortunately, you’re going to have to pay for the insurance deductible every time. Comprehensive is only different because there is no other driver that is responsible. The only good thing about comprehensive insurance is that it is unlikely to cause a rise in your insurance premium.

How Do I Choose An Insurance Deductible?

When you choose an insurance deductible, you need to think about your odds of getting into an accident. On top of that, you also need to consider your financial situation. If you never have any money in your bank account, you might want to consider a zero deductible insurance policy. However, if you are capable of keeping some money in your bank account, you might want to get a low insurance deductible. Low insurance deductibles are available in the range of something like $500-$1000. If you happen to have a lot of money in your bank account, you may want to have a higher insurance deductible. This will allow you to save some money on your car insurance. However, just keep in mind that if you get into an accident, you’re going to have to pay out a large insurance deductible.

Should I Look At Insurance Deductibles When I Shop Around For An Insurance Company?

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This is definitely something that you should look at when you shop around for an insurance company. Sure, an insurance company might be able to give you a very low quote on your car insurance. However, hidden in the fine print, you might find extremely high insurance deductibles. When you’re shopping around at different insurance providers it is a good idea to ask for quotes containing different levels deductibles. This is a great way to be able to make a budget for yourself. Before you sign with any insurance policy, you should always make sure that you can afford to make all of your car payments.

To Conclude

Zero deductible insurance policies certainly aren’t for everyone. However, these are great policies for people who struggle to keep money in their bank accounts. Not everyone is good at saving and it is essential to keep your car on the road. You certainly do not want to get into an accident and not be able to afford to fix your vehicle. This would leave you in a very tough situation in which you might have to get other people to drive you around. A zero deductible insurance policy is certainly something that is worth considering if you can find an insurance company that offers it.

Resources:

https://www.allstate.com/tools-and-resources/car-insurance/zero-deductible-insurance.aspx