Who Pays the Car Insurance Deductible?

Most of us would love to get the best price on our auto insurance, because it is a bill we are paying each and every month. Yet, did you know that one of the best ways to allow you to save money on the costs of your auto insurance can depend heavily on the deductible amount you set. This is extremely important to the amount of insurance you will pay over all.

So, when it comes to who pays the insurance deductible, you should be aware you are the one that will have to pay the entire amount of the deductible, so even though you can save money by setting a higher deductible, you will want to be sure you can come up with the deductible amount you agree to. This is extremely important because if you have a problem where your insurance will need to kick in and pay, the insurance deductible will have to be met first.

For example, if you have an accident where there is damage of $5000 and you have a deductible of $1000, you will have to pay the deductible before the insurance company will kick in and pay the $4000. This is the way the insurance deductible works, so you can see how ultimately important it is for you to have a deductible you can afford to pay. In the event you won’t be able to come up with the deductible, the insurance will delay payment for the accident.

There are millions of people who really aren’t aware of this fact and assume the insurance company will pay for the entire amount of damage the accident caused, but this is just not the case. It is very important that you realize this fact in the beginning because it may prevent a lot of frustration in the future.

The mere fact that the insurance company will not pay anything before you meet your deductible is reason enough to put some thought into the amount of your deductible. Most of us realize that a higher deductible can ultimately save us a lot of money, but at what expense? It’s not a good idea to be constantly worried about what if you are involved in an accident, because this can truly wear on your peace of mind.

So, consider what you want your deductible to be prior to committing to it. Make certain you have at least this amount set aside somewhere in the event you need it. It can truly make a huge difference in the future when you have a deductible you can afford to pay right away and not have to worry at all about it. This will lead to much less stress in the event you have damage to your automobile that costs $5000 to repair. Many people neglect the importance of being prepared to pay for this in the event it was to actually occur. Your deductible is not just a number, it is a number you will have to have set aside to pay for accident.

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