What Is An Auto Insurance Deductibles?
Reader’s Question:
I’m looking to buy an auto insurance policy here in Nevada, and I have a question about deductibles, What is it and how exactly does it work?
Miles
Reno, NV
A Deductible is the amount of money deducted from the payment coming from your car insurance policy after your claim has been approved. Auto insurance providers are obligated to make sure that you understand the amount of deductibles that will be stipulated within your auto insurance policy before you agree to accept the said insurance policy. For example, if you file for damages brought upon by a car collision and you have a $250 deductible under your policy, that amount will be deducted from the total payment or settlement you receive from your carrier or insurance provider. So if you were awarded $1000 then you actually only get $750, with the stated example. Keep in mind though, if the repair costs less than the deductible, then don’t go for the deductible since you will have to end up paying the insurance company the difference.
Deductibles are not fixed, most auto insurance policies would allow you to set the deductible higher, or lower, depending on your preference. It is actually recommended to increase your deductible if you drive an older vehicle or don’t drive your vehicle that much. You can actually lower down your regular car insurance premiums with a lower deductible. Also, each portion of your policy there in Nevada, such as for collision and comprehensive insurance, will carry their own respective amounts of deductibles.
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