When to Use Your Car Insurance Deductible
The auto insurance deductible represents the amount of money you will first have to pay from your own finances before the insurance company begins to cover claim costs. Car insurance policy deductibles are normally set on a per claim basis meaning you would have to cover these costs every time you file a claim. Higher deductible policies come with lower annual premiums in exchange for the higher out of pocket expenses. Find out when to use your car insurance deductible and get auto insurance quotes online for free from our website.
There are several scenarios when using your deductible is recommended. For example, you should make a claim and ask for deductibles and you suffer a minor accident with just few cosmetic damage. If you have a clean record, it is likely that the premiums will not increase or not increase by much. Make the claim if the cosmetic damage costs more than two thousand dollars or if the damage affected one or more components that must be functional in order to drive legally.
When the accident is serious and there is a strong possibility of future mechanical problems caused by the accident, making a claim and paying the deductible is recommended. Also, see if you can get rental services from your insurer.
In some cases where another driver is at fault for the accident you may wish to file a third party claim against their property damage coverage. Under these circumstances your insurer may pursue a process called subrogation to recoup the amounts they have already paid. In the process they may also help to reclaim any amount that you paid through your deductible. So, in the end, you will recover the paid money and will avoid having your premiums increased due to the claim.
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