When you apply for Plano auto insurance
coverage, your choice of deductible may seem pretty straightforward
however, there are some nuances to auto insurance deductibles that you
should be aware of.
· There are multiple deductibles in your policy:
Your auto insurance policy probably doesn't have just one deductible.
Instead, there may be many different deductibles for the various
coverages offered. For example, let’s say you are in an accident that
damages your vehicle and causes bodily injury to another. If you have
collision coverage with a $500 deductible and bodily injury liability
protection with no deductible then your initial out-of-pocket costs will
be $500 and you won’t pay more unless any of the claims exceed your
coverage’s limits. But your personal injury deductible may be higher, as
might your comprehensive.
· Deductibles are per vehicle:
If your auto insurance policy covers multiple vehicles including those
driven by your spouse and children then you have multiple deductibles.
So if you and your spouse are both in an accident on the same day you
will be expected to pay the deductible for each accident. And if you
happen to be in an accident with another car covered on your policy,
such as when you back out of your garage, you can still be charged two
separate deductibles. Not only does this make it extremely important
that you choose deductibles you can actually afford to pay, but it also
should factor in to your decision about whether or not to pay for
damages out of your own pocket or to file a claim because with two
claims for one accident, you could see an increase in your auto
insurance rates.
· Deductibles are per incident:
Auto insurance deductibles are different from health insurance
deductibles. Instead of all your out-of-pocket deductibles adding up
throughout the course of the year and your personal out-of-pocket
responsibility ceasing once you've paid your deductible, each incident
is subject to a deductible. For example, let's say you have a car
accident in September that results in $500 worth of damages to your car.
You have a $1000 deductible. In this instance your insurance company
would pay no claim because your damages are less than your deductible
and you would be expected to pay $500 out-of-pocket to have your car
fixed. Then, let's say in December you have another accident this one
with $1500 worth of damage. Now you would be expected to pay $1000 of
that damage because that’s your deductible and the insurance company
would pay the remaining amount.
· If your car is totaled, you don’t pay a deductible:
If you're car is totaled in an accident and you go through your
insurance company to place the claim, you do not have to pay your
insurance company the deductible. In fact, the deductible is something
that you will always pay to vendors to fix your car – not to the
insurance company. However, in the event of a totaled vehicle, when the
insurance company writes the check for the value of the loss they will
reduce it by the amount of your deductible.
· Deductibles can be reimbursed:
If you have an accident and another driver is at fault you can make a
claim through your insurance company which will require you to pay your
deductible for a portion of the repairs. However, your insurance company
will work to retrieve both their damages and your deductible from the
other driver’s insurance policy which means you may get refunded your
deductible. This would not be the case if the other driver was uninsured
or underinsured which is why uninsured and underinsured motorist
coverage is so vital. If the other driver is sufficiently insured, you
do have the option to file a claim with their insurance company however
you should still let your own insurance company know about the accident
and the claim. Generally, calling your own insurance company and agent
first will ensure that you take the correct subsequent steps to be made
whole again.
If you have questions about your auto insurance deductible or if you
think your deductible might be higher than you can reasonably afford,
give us a call 972-649-9007. We can conduct an auto insurance policy review and help make sure you have sufficient protection at an affordable price.
