Deductibles are the amount of money you are responsible for if you have an “incident” that is covered under either Part 7 Collision or Part 9 Comprehensive.
On the Massachusetts Auto Policy only 2 parts out of the 12 parts cover your car and have a deductible, they are Part 7 Collision and Part 9 Comprehensive.
Available deductibles on Collision are $300, $500, $1000 and $2000.
Most people get a $500 – this is what the banks will require if you are financing your vehicle.
The greater the deductible the less that Part will cost you on your insurance. For instance, a $500 deductible on Collision may cost you $600 a year – however if you go to a $1000 deductible you will pay about 30%-40% less or about $400 a year.
Keep in mind the higher the deductible the more you have to come up with “out of pocket” if you have a claim.
With Part 9 Comprehensive the available deductibles are $300 or $500. Yet it is important to be sure your glass coverage under Part 9 does not have a deductible – you want any glass claim paid in full 100%.
Companies like GEICO and Progressive can sneak in a deductible on glass – and if you have a claim you will not be happy when they tell you you have to pay for the glass.
For Part 9 a $300 deductible is most common – this means that if your car is stolen, vandalized or has fire damage – the company will first determine if the claim is legitimate – then they will pay your claim less your deductible.
For instance, if your car is stolen and not recovered – the value of the car is $5000 – the company will pay you $4700 – the value less your deductible.
The purpose of deductible – of a car insurance deductible, from a company standpoint – is to eliminate the little claims.
Call our office if you have questions about this and to get a free Commerce Car Insurance Quote.