Knowing all about your deductible before a loss is extremely important. Having to get a vehicle repaired, a roof replaced, or a motorcyle fixed after a loss is never the most exciting experience. It can be frustrating if you didn’t realize you’d need to meet your deductible out of pocket, and have that money set aside ahead of time. So, let’s break down how it works.
What is a deductible
A deductible is the amount you agree to pay out of your own pocket before the insurance money kicks in to repair your own vehicle or home. You choose this amount when the policy is wrote and it is listed on your declarations page. Auto deductibles are most commonly sold as $250, $500, or $1,000. Homeowner’s deductibles are most commonly sold as $1000, $2000 or 1% of your dwelling coverage amount.
Does my deductible affect my premium
The deductible you choose does affect the premium you pay. The lower the deductible, the higher the premium. The more the insurance company will be paying out for a loss, the more they collect in premium. The higher the deductible, the lower the premium. The greater amount you’re willing to pay out after a loss, the lower the amount the insurance company collects through out the policy period.
Do I owe a deductible before liability to others is paid
Deducitbles do not apply toward liability to others. You will not owe out of pocket before the vehicle or medical bills of another person you are liable to is covered. If you have a fender bender with someone and are only carrying liability on your vehicle, have no damage, or don’t have enough saved to cover your deductible, that only applies to you. The other party can still get their vehicle fixed and the insurance will pay that portion. This also applies if they need medical treatment. There is no deductible due for liabillity to others.
Can I change my deductible
Yes, you can change your deductible on your home or auto any time you choose. As long as you are not in the middle of a loss, you have the right to change your deductible. It’s wise to choose an amount that you have set aside in savings. That way you have the money ready to use and there is no delay in being able to repair your auto or home. If you’re unsure what your deductibles are, or where to find them on your declarations page, let me know. You can reach me at 615-472-1515 or by emailing kaylagulick@tnsig.com. I’m happy to help make sure they are set where you need them to be.
