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The Basics of Auto Insurance Deductibles

If you’ve never had auto insurance or are new to it, you might not know about deductibles. This is a crucial element that you should learn about before you will end up needing to do anything with it. You can discuss this with an agent from Pethel Insurance Group of the Kannapolis, NC area if you have some specific questions. 

What Is an Auto Insurance Deductible? 

A deductible is what a driver will have to pay out of pocket for any repairs before they can tap into the insurance. They only apply when it comes to comprehensive and collision claims. The premium typically will be lower when the deductible is higher. This means that you’ll pay less for your insurance in general. 

Insurance companies will sometimes offer diminishing deductibles on someone’s auto insurance policy. This is also known by the terms "disappearing" or "vanishing" deductible. It is additional coverage that serves as a reward for safe drivers. Drivers who don’t get into automobile accidents and continue to have a clean driving record end up with a decreased deductible amount as a type of reward. 

Can You Choose Your Deductible? 

Yes, in many cases, you will be able to choose if you have a low or high deductible. Auto insurance deductibles are different from health insurance because there aren’t any annual deductibles that you have to meet. However, you are responsible for the stated deductible in your insurance policy each time you file a claim. Once you pay this amount, your insurance company will pay out the rest of the cost to replace or repair your vehicle. 

The process of getting and maintaining your auto insurance is made easier when you work with a trustworthy agent such as those at Pethel Insurance Group of the greater Kannapolis, NC area. Contact us today to get more information on deductibles and other aspects of auto insurance.

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