whar is a deductable in auto insurance?

Answer 1

In an insurance policy, the deductible or excess is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policy holder. The deductible must be "met", that is, paid by the insured, before the benefits of the policy can apply.

In a typical automobile insurance policy, a deductible will apply to claims arising from damage to or loss of the policy holder's own vehicle, whether this damage/loss is caused by accidents for which the holder is responsible, vandalism or theft. Third-party liability coverage generally has no deductible, since the third party will likely attempt to recover any loss, however small, for which the policy holder is liable.

Most health insurance policies and some travel insurance policies have deductibles as well. Typically, a general rule is: the higher the deductible, the lower the premium, and vice versa. The type of health insurance deductibles can also vary, as individual amounts and family amounts. Major medical insurance policies are known for often having a deductible which does not cover the cost of routine visits (e.g., to a doctor's office).

Answer 2

When you apply for auto insurance, the company will ask you to choose an amount to be your "deductible." In the event that you need to file a claim on the insurance (when something happens to your car), all you will need to do is pay the amount of the deductible (often $500), and the insurance company will pay the rest up to your coverage limit.

If you want a low deductible, your insurance premium will be higher because each accident you have will cost the insurance company more, and make it more likely that you'll file a claim. It's worthwhile to ask your company for a quote for a high ($1000/$500) deductible and a low ($250/$100) deductible just to see what they say.

It's usually MUCH cheaper to get a low deductible for comprehensive coverage than collision coverage, so you might as well do it. Comprehensive coverage will cover you for vandalism, theft, and other non-collision related damage to the car.

The best way to get insurance information, though, is from a qualified insurance agent. I would suggest going to http://www.insureme.com/landing.aspx?Refby=614498&Type=auto. It’s a web site that offers insurance information & information on policies nationwide. It also gives you the option to call local agents to get any of your questions answered. This service is 100% free and you are not obligated to buy anything. It is simply a way to get insurance information and be able to instantly compare rates in your area to find the best price/coverage.

Take care – Ron at InsureMe

Answer 3

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Answer 4

The amount the insured is required and obligated to pay by the insurance policy. The deductible is chosen by the insured and is usually applied to coverage's such as comprehensive and collision. Generally the lower the deductible, the higher the insurance premium.

Answer 5

The stated amount you have to pay out of pocket at the time of a loss. The higher the deductible the lower the insurance...

Answer 6

A deductible is the amount you are responsible for while filing a claim. It is not uncommon now for drivers to have a 1,000 dollar deductible to lower insurance cost. So for example if your car insurance has a 1,000 dollar deductible and you have damages that cost 5,000 the insurance company would pay 4,000 and you would be responsible for 1,000.

Answer 7

That's the portion of the cost you need to cough up out of your own pocket- not the insurance company!! Varies by policy and carrier!

Answer 8

the amt of damage you have to pay for vs what the insurance pays...if you have 1000 ded. and the damage is 2k then they send you 1k.