When Do You Pay The Deductible For Car Insurance? The Right Answers
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There are many aspects of car insurance and it is important to have car insurance deductible explained so that you can understand what you will be expected to pay. Car insurance deductible is the amount of money that you will be required to pay to have your car repaired when you make a claim. The insurance company will then foot the rest of the bill after you have paid the deductible. You will be required to pay the deductible every time you make a claim which means you cannot pay an annual deductible like in health insurance.
If your policy has a higher deductible, you may end up paying lower annual premiums. The question then begs: When do you pay the deductible for car insurance? It will depend on the type of coverage that you have.
Insurance covers that have a deductible
There are mainly two types of car insurance policies that have a deductible attached to them. These are the collision coverage and the comprehensive coverage. Collision coverage covers damage to your car when you crash into another car or a stationary object. It however does not cover the damage caused to the other person’s car or property.
The comprehensive coverage covers damage that is caused to your car when you are not at fault. Your car can get damaged when for instance a tree falls on it and that is not your fault. The comprehensive coverage deductible can therefore be referred to as the car insurance deductible not at fault.
When to pay deductible
It is important to have all the information on when do you pay the deductible for car insurance. Many drivers wrongly assume that they have to pay a deductible with every claim. This is not the case though most times you will be required to pay the deductible.
You may be asking, “Do I pay a deductible if I hit a car?” The owner of the car may make a claim against you and in this case you will not be required to pay a deductible. Rather, liability insurance will kick in and there is no deductible that is attached to this coverage.
If you are involved in an accident in which another driver hits you, your car will be repaired by the other driver’s insurance company and you will not pay your deductible. If it is determined that both you and the other driver were partly at fault, you may be required to pay a portion of the deductible.
Paying the deductible
You probably would like to know what happens if you can’t pay your car insurance deductible. Since the deductible is an out of pocket payment, you may be required to pay a deductible when you can least afford it. You will be forced to work around the amount that the insurance company will pay. You can opt to have repairs done on the most important aspects of the car and ignore the optional repairs. You can also agree on how to pay the repair shop in small amounts.
There are options for how to avoid paying car insurance deductible. If your windshield is to be repaired, for instance, you may find that it is actually covered under your comprehensive insurance.