What Is An Auto Insurance Deductible?

ByDavid D Mortel

An automobile insurance deductible is the sum of money that has to be paid by the individual who owns the policy. This particular amount is generally stated in advance and you can also find the same in the car insurance plan. Deductibles are applicable to two kinds of auto insurances, namely, coverage against possible car collision and the comprehensive type of insurance. Collision insurance protects the plan holder's car in case of a mishap; whereas, the comprehensive type answers for auto theft, destruction and other types of defacement that are related to extreme weather conditions.

The number of highway and road accidents continuously increase and if you want to be spared from the terrible expenses that are related to auto repairs, the best thing for you to do is to shop for the right company that provides the best deal when it comes to car insurances. Furthermore, there are a lot of natural calamities that occur every now and then. The only way for your vehicle to be protected from all these damages is for you to purchase the most appropriate car insurance plan.

Important Reminders when it comes to Car Insurance Deductibles

1. Check the different highlights of both car insurance policies and declare the appropriate sum for your deductibles. Generally, most people assert a standard rate of $500 as their deductible when paying for their auto insurance plan. However, the owner of the policy can increase or decrease the said amount depending on his preferences.

2. The thing about car insurance deductibles is that it has a great impact on the premium. If you decide to decrease the amount of your deductibles then you can expect to pay a higher sum of money for the policy's premium. This is actually the reason why several auto insurance holders decide to increase their deductible sums so they can be charged with a lesser amount of premium for their auto insurance.

3. When you encounter any kind of accident on the highway and your vehicle was badly impaired, the auto insurance deductible will be utilized. First, the insurer comes up with appropriate estimates regarding the amount that has to be paid to fix or restore the car to its original state. Afterwards, the insurer subtracts the amount of car insurance deductible and issues a check for the balance up to the amount that was set as the maximum value for the coverage. The insurer may decide to issue the check to the owner of the policy or to the company which handles the repairs.

4. One of the purposes why auto insurance deductibles are being set up is to prevent using a car insurance coverage to claim smaller amounts. For example, the owner of the policy incurred $700 as the total cost of repairs and he has an auto insurance deductible amounting to $500. There is a greater chance that the policy owner will no longer seek to claim on his coverage; rather, he will simply claim for the $200 difference.

Find out information about car insurance requirements, take expert help from auto insurance agents and get the cheap car insurance for your car.

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Insurance: Car-Auto
David D Mortel

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesAuto Windshields - Car Windshield Replacement and RepairRental Car Insurance - Should You Buy Rental Car Insurance?Use Online Insurance Comparison to Find Cheap Car InsuranceAuto Insurance - A Guide to Buying Car Insurance For Your Used VehicleHow to Compare Auto Insurance Quotes and How to Pick the Right Auto Insurance Agents For YouCar Insurance - Lowest - 5 Ways to Save Money on Auto InsuranceCheap Arizona Car Insurance Rates - You Can Find a Cheap Arizona Auto Insurance Policy Today!Cheap Auto Insurance Online - Cutting Down the Car Insurance Rates You PayGetting The Best Car Insurance For A Second Hand CarAuto Insurance Shopping For a New CarRecent ArticlesHow Save Money On Your Auto InsuranceTips on How to Pay for Car InsuranceWhy You Should Own a ConvertibleChoosing a Good Auto Insurance CompanyTips on Getting Auto Insurance Quotes OnlineThe Steps For Filing A Car Insurance ClaimTheft of Personal Property From Car - Does Your Insurance Cover It?Learning From A Vehicle Insurance OverviewHow to Choose the Right Car Insurance PlanWhat Information Do I Need to Compare Car Insurance Online?Submitted On January 12, 2012. Viewed 19 times. Word count: 500.

MLA Style Citation:
Mortel, David D.".".12 Jan. 2012EzineArticles.com.26 Jan. 2012 .APA Style Citation:
Mortel, D. D. (2012, January 12). . Retrieved January 26, 2012, from http://ezinearticles.com/?What-­Is-­An-­Auto-­Insurance-­Deductible?&id=6812029Chicago Style Citation:
Mortel, David D. "." EzineArticles.com. http://ezinearticles.com/?What-­Is-­An-­Auto-­Insurance-­Deductible?&id=6812029EzineArticles.com© 2012 EzineArticles.com
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