- September 13, 2014
- Posted by: admin
- Categories: Auto Insurance, blog, Commercial Vehicle Insurance, Insurance Claims, Insurance Coverages, Miscellaneous
Car Insurance Deductibles
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.