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Your Auto Insurance Deductible Explained

By AutoCrisis.com®

When you buy a car, truck, van, or SUV, and try to purchase auto insurance, your agent will likely mention the term 'deductible' when giving you a quotation. An auto insurance 'Deductible' is the portion of any claim that is not covered by an insurance provider. In essence, it's a clause in an auto insurance policy that states that an insured party will pay a specific amount toward a covered damage or loss, while the insurance provider picks up the remaining cost.

For example, say you have a $500.00 deductible on your car insurance policy and your car was damaged in an accident, but your policy had a coverage that protects you. Then your auto insurance provider will pay for the cost to repair your car, however, you will have to pay $500.00 towards the cost of the repair.

Also, if the cost of repairing your car exceeds it's current value, and you have a comprehensive insurance policy that covers you for replacement of your car when an accident occurs, your insurance company may decide to 'write off' your car, and pay you off. Before they do that though, they will deduct $500.00 from the settlement check you'll recieve after their adjuster has inspected your wrecked car or truck.

As always, AutoCrisis.com suggests that you check with your Insurance Agent or provider first before you make a purchase decision, as to the amount, type, and level of auto insurance coverage you will need.

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