If you do not have deductible auto insurance, you have selected insurance options that do not require you to prepay amounts for a covered claim. Suppose you have opted for collision insurance with no deductible. If you have a covered repair claim of $1,500, your insurer will reimburse you a total of $ 1,500. Conversely, if you had collision insurance with a $500 deductible, your insurer would reimburse you for $1,000 (covered repairs minus your deductible).
Please note that this amount applies whenever your auto insurance has a deductible when you make a claim. This differs from a health insurance deductible, where you usually only pay one deductible per calendar year.
Here are some things to consider when purchasing a no-deductible policy.
THE COST OF A NON-DEDUCTIBLE POLICY
You will likely pay a higher premium for coverage with no deductible. This is because deductibles are used to share the risk of an accident with an insurer, says III. When purchasing a policy with no deductible, the risk lies solely with the insurance company. A higher premium for a policy with no deductible (or with a low deductible) is how the insurance company accepts this higher risk.
DEDUCTIONS ARE DETERMINED FOR EACH COVERAGE IN A POLICY
A deductible is what you pay out of pocket for auto repairs before your insurance company helps you cover a claim. Some types of your auto insurance coverage have a separate deductible. You can therefore have several deductibles for the same policy.
When purchasing collision coverage and comprehensive coverage, you can usually choose your deductibles (fixed amounts). Remember, if you don’t have a deductible, you can increase the amount you pay for this coverage.
When it comes to liability insurance, most insurance companies don’t charge a deductible at all, regardless of your choice of coverage.
CERTAIN DEDUCTIONS REQUIRED BY STATE LAW
Non-deductible coverage options vary by state and insurance offer.
Some states have laws that require a deductible on certain coverage. In these states, a zero deductible option is not allowed for some coverages eg. B. for Personal Injury Protection (PIP) or property damage coverage caused by uninsured motorists. These covers are not available in all states.
On the other hand, some states have laws and coverage options that allow you to waive a deductible for certain types of claims. Take, for example, full coverage to help you repair or replace a broken windshield. In most states, insurers typically waive the full deductible for a glass claim if the glass is repaired rather than replaced. In some states, full coverage may also include “full glass coverage”. If you purchase the full glass option, the excess does not apply, regardless of whether the damaged glass has been repaired or replaced.
Bottom Line: You may be able to select some benefits with no deductible, not automatically have a deductible for other benefits, or you may be legally required to pay a deductible for other coverages. Talk to your local representative. He or she can help you make the decisions that fit your needs and your budget.