Choosing the Deductible That Works For You

October 10, 2012 at 9:42 AM | Posted in Insurance Policy | Leave a comment
Tags: auto, claims, deductible, home, savings

In almost every claim situation a deductible applies, and can add up to a costly out-of-pocket expense at the time of a claim. However, by choosing a higher deductible you can keep your insurance premium costs down.  Here is some information that you should consider when choosing your deductible: 

Comprehensive coverage includes fire, theft, falling objects, damage caused by animals, and glass coverage.  The deductible you choose is always applied in a comprehensive claim with the exception of a glass only claim.  Most agents write comprehensive coverage with no glass deductible because the savings for applying a glass deductible is very minimal.   For other damage, beyond just the glass (for example: when a side view mirror casing housing the glass is also damaged), the comprehensive deductible will apply to the entire loss. 

Collision deductibles are always applied in the event of a claim.  Most agents automatically apply collision waiver coverage.  The cost of this endorsement (usually about $14 a year) is minimal in comparison to the policy deductible.  This coverage waives your deductible when you are not at fault in the accident and can identify who hit you, even if they are uninsured.  Most companies offer some form of disappearing collision deductible coverage for an additional fee.  Each year you are incident-free your collision deductible is reduced so the next time you have an accident and the deductible applies, you will not have as much out-of-pocket expense. 

Home policies always apply the deductible to a claim.  Unfortunately, at this time there is no optional coverage that reduces your home deductible.  However, there are some companies who now apply a single loss deductible when both your home and auto policies are written with them and when the damaged is due to the same loss.  

The standard deductible is now $500 for auto and home although some companies are now requiring homes to carry at least a $1,000 deductible in some situations.  

Call us at 888-850-9400 if you need additional assistance reviewing the deductible options that are the perfect choice for you.