Deductibles 101

WHY WILL NO ONE INSURE ME?

If your car insurance has been refused, cancelled, or voided, this could happen for a wide range of reasons. However, if you are having trouble finding cover for your vehicle, try not to worry as there are plenty of options out there. What is non-disclosure? One...

Defensive Driving Techniques to Avoid Accidents and Insurance Claims

If you want to reduce your risk of traffic accidents and the insurance claims that accompany them — which could cause your premium to go up — you need to drive defensively. Here are some driving tips to help you avoid crashes and stay safe on the road. Always Assume...

Avoid deadly distractions behind the wheel

Not texting is a start, but there's more to safe driving. Here’s the bad news: Distracted driving causes thousands of accidents every year, many of them fatal. The good news? If you're driving, it's 100% preventable. You've seen them around your city or town. You may...

10 Tips to Protect Your Car’s Suspension System

Your vehicle's suspension system ensures a smooth and safe ride, protecting critical components from wear and tear. Understanding and maintaining the components of the system is essential, not just for comfort but also for the stability of the car on rough roads....

The what, why and how of a Vehicle Identification Number

If you’ve ever bought motor insurance, you’re likely to have come across the terms Vehicle Identification Number or VIN and chassis number. You must wonder why insurance companies insist on having this information. That’s because VIN is like a genetic identifier for...

What Is ORVM In Car And How Does It Work?

When you adjust the side mirrors before driving, you deal with the Outside Rear View Mirrors (ORVMs). These mirrors are essential for safe driving, helping you see what’s happening beside and behind your car. This post will discuss what ORVMs are, how they function,...

How to Track a Vehicle with GPS: A Simple Step-by-Step Guide

GPS-based vehicle tracking is today, one of the most helpful tools since it can be employed by any individual or company who wishes to keep track of their cars, trucks or any other vehicle. Thanks to today’s cheap GPS tracking devices, a vehicle owner can easily place...

How To Rebuild Your No Claims Bonus After An Accident

If you’ve had an accident, it can feel like all the good work you’ve put into building your No Claims Bonus (NCB) has gone down the drain. But here’s some good news, you can rebuild it. Your NCB in car insurance works like a reward for safe driving, and that lovely...

Safety Tips For Driving In Floods

Often when we get stuck while driving through floods we panic and force through the water. Instead you need to stay calm and follow these instructions. Situation One: Water Level Is Above Tyre Level  When water level is above the tyre level it's no use forcing...

Car Defogger and How to Use Them?

Have you ever experienced your car windows and windshield suddenly fogging up? It can be scary since poor visibility may cause a dangerous road accident. Driving in the cold or rainy seasons can often lead to foggy windows. This is a common problem, and can quickly...

A deductible is the amount you are required to pay out of pocket when filing an insurance claim.

You probably talked about them when you first bought your insurance coverage. But if you don’t review your insurance annually, the next time you even hear the word “deductible” could be months or even years later when you’re filing a claim. And this can make an already stressful time even more puzzling.

While we don’t expect you to agonize over your deductible every day, it’s important to know how to find and understand your deductibles, as well as determine if you’re paying the correct amount for your current risk.

Find and understand your deductible.
Your deductible is very easy to find. On a standard homeowners or auto insurance policy, your deductible amounts should be listed on the front page. This page is also known as the declarations page.

You may notice that your policy contains different deductible amounts for each individual coverage. For example, an auto policy includes both comprehensive and collision coverage, each with its own deductible. Collision coverage kicks in if you collide with another object. So if you got into an accident with another driver, the collision deductible will apply to your claim. Comprehensive coverage applies when the damage to your car is brought on by other causes, like if you hit a deer or if a tree falls on your vehicle. In these instances, the comprehensive deductible will apply.

Also, you may see that some coverages don’t require a deductible, like scheduled coverage for jewelry or other valuable items, as well as homeowners’ or auto liability coverage. In these cases, you won’t have to pay any out of pocket costs if you need to file a claim.

Choose a deductible that’s right for you.
Deductibles also affect your rates. The higher the deductible, the lower your premium. Meaning, if you’re willing to pay more out of pocket when filing a claim, your monthly or semiannual payments will be smaller. On the flipside, if you’re willing to pay more in premium, your deductible will be reduced.

When you review your policy, your agent can help you make sure that you’re paying the right amount for your risk. For instance, if you’ve got a fairly new home, you may not have the same risks as an older house and may not be as likely to file a claim. In which case, it could be better to have a higher deductible and lower premium.

And since different coverages within your policy contain different deductibles, your premium and deductibles can become even more customized. For example, if you live in the country and are more likely to hit a deer than another car, you may want to lower your deductible for comprehensive coverage, but raise your deductible for collision coverage.

Talk to your agent.
Your insurance agent is the best person to talk to when making these decisions. An annual review of your policy doesn’t take much time and could potentially save you money.