Car Insurance Deductible Explained, You Should Know

What's up everybody? today, we're gonna talk about those deductibles.

When I entered college, I had no idea what a deductible was. I didn't know why I needed to know what it is or that it was even relevant to my life at all. A deductible with respect to an insurance policy is the amount of money that a policyholder pays, which is you, to the insurance provider in order for them to pay any expenses for your claim.

You should see something on your insurance card. So, I have State Farm and on my insurance card it says, $500 deduct comprehensive or $500 deduct collision. Young Abraham was at work one day and while Abraham was at work, a bunch of hoodlums broke into his car, smashed his car window open and stole all of his stuff. But don't worry, Abraham had car insurance. The fact that Abraham had car insurance means that Abraham doesn't have to pay for the damages that has been bestowed upon his vehicle.

Car Insurance Deductible Explained, You Should Know

The only thing that Abraham has to pay is his deductible, his $500 deductible. So he pays the insurance company $500, and then the insurance company then in turn repairs all the damages done to his vehicle as a result of the robbery.

The first example covered comprehensive coverage, the second example's gonna cover collision coverage. So here we go, another example for collision coverage. Let's say you were reversing out of a parking lot, and while reversing you hit the car behind you and you caused damage to their car and you caused damage to your car. You are going to have to pay a $500 collision deductible to fix your vehicle.

Let's say you were reversing and you hit the car behind you. No damage was done to your vehicle but damage was done to the person who you hit. You won't have to pay a deductible for covering their vehicle. The insurance company will pay that money for you. I hope that you found today's quick tip valuable and I'll see you next time.
Car Insurance Deductible Explained, You Should Know Car Insurance Deductible Explained, You Should Know Reviewed by IIS Daily on July 25, 2020 Rating: 5

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