A car insurance deductible is the amount of money that you are responsible for paying out of your pocket in the event of a car accident. This is something that you will need to think about when purchasing car insurance, as it can affect your premiums. This article will discuss what a car insurance deductible is and how it works.
What Does a Deductible Mean in Car Insurance?
Your car insurance deductible is the amount of money that you are required to pay towards an insured loss. For example, if you have a $500 deductible and you suffer a $1500 loss, your insurance company will reimburse you for the $1000 difference. In order to avoid having to pay a deductible, you can purchase what is known as collision coverage.
If you are thinking about purchasing car insurance, it is important to understand how deductibles work. This will help you make the best decision for your needs. Contacting a trusted and reputed auto insurance in Decatur, GA, can help you get the answers to any questions that you may have. They can help you find the right policy for your needs and budget.
3 Main Types of Car Insurance Deductibles
1. Comprehensive Coverage Deductible
This is the amount of money you’d have to pay if your car was stolen or vandalized. It also covers damage caused by natural disasters, fire, or falling objects—like a tree branch. The average comprehensive deductible is $200 per year, and if you file a claim for damage to your vehicle under this coverage, the deductibles on the policy will apply.
2. Collision Coverage Deductible
Collision insurance helps pay to repair or replace your vehicle if it’s damaged in an accident with another car or an object. This type of coverage is optional, but if you decide to purchase it, the average collision deductible is $300 per year. While collision coverage does not cover mechanical breakdown or normal wear and tear on your car, it does cover damage caused by potholes or rolling.
3. Personal Injury Protection (PIP) Deductible
Personal injury protection is a type of coverage that can help pay your medical bills if you’re injured in a car accident, regardless of who is at fault. It can also help cover lost wages and other expenses. In addition, you can also consider checking out is it possible to get car insurance without a car, as it will give you an idea of what other options are available to you and how they work.
Now that you know what a car insurance deductible is, you can make an informed decision about whether or not to purchase collision or comprehensive coverage. If you have any questions, be sure to contact a professional company for assistance. They will not only help you understand your options, but they can also help you find the best policy for your needs.