Deductibles

In insurance policies, the deductible is the portion, or percentage, of any claim that is not covered by the insurance provider. It is more commonly known as the amount of money the insured must pay out of pocket before an insurer will cover any expenses.  

Deductibles are quoted as a fixed quantity. It is a part of most policies that cover losses to the policy holder. The deductible must be paid before the benefits of the policy will apply. In general, the higher a person’s deductible is, the lower the premium will be. The reverse is also true.

In typical car insurance policies, a deductible will apply to claims arising from damage to or loss of the policy holder’s own vehicle. Whether the damage or loss is caused by accidents, vandalism, or theft, the deductible will still have to be paid. Third-party liability coverage plans usually do not have deductibles, since the third party will attempt to recover any loss for which the policy holder is liable.

When selecting auto insurance, a person is usually given a variety of options for deductibles and premiums. A person should never take a policy that has a deductible that is more than he or she can afford in favor of getting lower premiums. A person should only take on a policy that he or she can afford to pay the deductible on in the event that an accident or incident occurs.

Contact Us

If you would like to learn more about deductibles and lowering your monthly premiums, then the Chicago auto insurance agents of Insure on the Spot can help. Contact their offices at 1-888-972-7283 to schedule an appointment.