Who Pays Deductible Car Insurance
Deductible car insurance- A car insurance deductible is the amount of money which must be paid forward repairs before your insurance covers up the rest. For many people, increasing the amount of their deductible is also a great way to save money. It is because by choosing a higher car insurance deductible. It can be lower the total amount which you should pay on your insurance premium.
However, it is important to choose a deductible which you can afford. Imagine not being able to get your car fixed because you do not have money to cover the deductible. When you choose your car insurance deductible; think more about how much you can pay, without you can stress because of it. Consider your income, your personal savings, your household budget and your available credit.
Generally deductibles applicable to two forms of coverage:
Collision Coverage: Covers damage done to your vehicle; when you are in a crash with another vehicle or any stationary object. This covers the cost of repairs and any replacements necessary for your own care. Collision coverage does not cover the damage you caused to other people’s property.
Comprehensive Coverage: Covers damage done to your vehicle in all instances. Other than a crash in which you are at fault including things like hail , falling tree limbs or any other types of damage which your car may incur.
How Does The Deductible Work?
For example, if you are got accident and it causes $3,000 worth of damage of your car but your deductible is $500. You only have to pay $500 toward the repair. The insurance company will pay all the remaining $2,500.
In some cases, another driver is at fault for the accident. You may wish to file third party claiming against the property damage coverage. Under these circumstances, your insurer may pursue the process called sub rogation. To recoup the amounts, they have already paid. In the process they may also help to reclaim any amount which you paid through your deductible.