Question 1

What is better: a higher or lower deductible for car insurance?

Accepted Answer

If your auto insurance budget is tight, a high-deductible plan might be more suitable for you. Moreover, if you are a low-risk driver who rarely files claims, you’d be more comfortable with a high-deductible policy.  However, if you file claims often or encounter high-risk situations, you should consider choosing a low-deductible plan.

Question 2

What happens if I can't pay my deductible?

Accepted Answer

If you can’t pay your deductible, you won’t be able to file an insurance claim for medical bills or vehicle damage. Instead, you will have to find a way to pay it by discussing a payment plan with your repair shop or taking out a loan. Alternatively, you can take your car to a different repair shop or borrow money from your family or friends.

Question 3

What is the best collision deductible?

Accepted Answer

It’s best to have a $500 collision deductible unless you have a large amount of savings. Remember, this deductible amount has to be paid every time you make a collision claim.

Question 4

What is the disadvantage of having a higher deductible?

Accepted Answer

A major con of a higher deductible is that you might not be able to afford a larger loss. Since some claims take a while to settle, you might be forced to pay more than just a deductible if your claim needs immediate repairs.

Question 5

Why do I have to pay a deductible if I am not at fault?

Accepted Answer

No, you don’t have to pay a deductible if you’re not at fault unless you file a claim with your insurer. In most cases, the at-fault driver’s insurance will cover the expenses. However, you might need to use your coverage if the at-fault driver is uninsured or fault is not determined.

Question 6

How do I get my deductible waived?

Accepted Answer

There are certain situations in which the deductible can get waived. For instance, some comprehensive insurance policies offer deductible-free repair or replacement of the damaged windshield glass. Moreover, if you own a “broad collision coverage,” your deductible will be waived in case you’re less than 50% responsible for the accident. However, each policy is different, and it’s best to get in touch with your insurance agent to find out when you can skip paying a deductible under your policy.

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