Rethinking your Insurance Deductible for Auto Body Repairs
What is an auto insurance deductible? Your deductible is the amount you’re responsible for out of pocket for damages from an auto accident before your insurance company pays. For example, let’s say your repair estimate is $1,200 and you have a $500 deductible. You would pay $500 and your insurance company would pay the remaining $700. Deductibles allow you to share the financial risk with your insurance company. In the eyes of the insurance company, the more risk you’re willing to take on through a higher deductible, the lower your monthly premium rate will be. However, when it comes down to it, that $1,000 deductible is going to look like a pretty large chunk of change whether you’re at fault or not.
What to Consider for Lower Deductible Policy (Less Risk)
With lower risk, your monthly premium will be higher. However, always check your insurance policy to determine if and how much your monthly rate will increase after an at-fault accident.
What to Consider for a Higher Deductible (More Risk)
It’s easy to think you’ll be saving money every month by selecting a higher deductible but keep in mind you will need to pay that higher deductible out-of-pocket if and when the time comes.
Rethinking your Insurance Deductible
In a general sense, insurance deductibles apply only to your property damage. It may not cover the liability portion if you’re legally responsible for injuries to other people or their property damage. Most auto insurance policies usually require you to carry separate deductibles for both comprehensive and collision coverage. Comprehensive coverage covers events such as fire, vandalism, glass damage, and theft. Collision coverage is for any vehicle damage due to an accident, regardless of fault. You will be responsible for the deductible that applies to the type of claim you have. Keep in mind that if you’re in an accident that isn’t your fault and the other party has insurance, the at-fault party’s insurance should cover those damages.
Know Your Vehicle’s Value
Consider your vehicle’s value when determining the amount you’re willing to pay for your deductible. Knowing your vehicle’s monetary value will help you decide how high to set your deductible for comprehensive and collision coverage. Remember auto insurance is meant to protect you from a financial setback, not cover those small losses you can afford to pay out of your own pocket.
Broadly speaking, the lower your deductible is, the higher your monthly premium payments. Make sure your deductible is set to the lowest amount you can afford under the monthly premium. Having the lowest deductible you can afford will lessen the blow when you receive an auto body repair bill.
Working with an Auto Body Shop in Ogden, UT
John Chevalier Collision Centerz in Ogden, Utah specializes in auto body repair work. We work directly with your insurance, serving as your quarterback to getting the best repairs possible. We work with all major insurance companies and will handle all of the paper work to make the experience as painless as possible.