Do I Need to Pay a Deductible When Filing a Car Insurance Claim?

Unlike health insurance, there are no annual deductibles to meet when it comes to car insurance. Every time you file a claim, you are responsible for the deductible stated in your policy. After you pay the amount of the car deductible, your insurer will cover the remaining cost to repair or replace your vehicle.

Car insurance

deductibles can be quite complicated to manage.

The answer to when you pay is relatively simple. You have to pay a deductible every time you apply for car insurance. The deductible is an agreed amount that you must pay out of pocket each time you file an insurance claim before the insurer covers the cost of the damages. As explained by Policygenius, since the deductible is considered first, you must pay it for each claim you make, as long as the damage reaches or exceeds its amount.

When Do You Pay Your Car Insurance Deductible?

When exactly is the car insurance deductible paid? Learn everything you need to know about paying deductibles. Your insurance company will pay for your damages, minus your deductible. Don't worry if the claim is resolved and it's determined that you weren't at fault for the accident, your deductible will be returned to you. You have to pay your car insurance deductible if you cause an accident that damages your vehicle and file a claim with your collision insurance.

If you're at fault for an accident and are injured, you'll also have to pay a PIP deductible. In most cases where you use your own insurance, you'll have to pay a deductible, sometimes even when you're not at fault. If you need to file a claim after an accident or mishap, you may have to pay a deductible. This is the amount you pay before your insurance coverage takes effect, and it's independent of your premium.

After paying the deductible, the insurance company covers the rest up to the policy limit. If you are involved in an accident that isn't your fault, you should still file the claim with your own insurance company. While considering increasing your deductibles if your premiums are too high, also consider the monthly savings compared to how much more you would have to pay if an accident occurred. Since it's nearly impossible to avoid paying the car insurance deductible in situations where it actually applies, it's important that you choose a deductible amount that you can afford.

Alternatives To Paying A Deductible

That effort would go to whatever service you need to repair the damage without strictly involving your insurance company. You can choose different deductibles for different types of coverage, so consider how likely you are to file each type of claim. Liability insurance may not require deductibles, but other types of car insurance do, according to Esurance. If the damages exceed your deductible, your insurance company will write you a check for the full amount of the damage minus your deductible.

Collision insurance and comprehensive insurance are additional coverages that can be taken out to protect your vehicle. The deductible amount should be based on what can be afforded if your vehicle is unexpectedly damaged. It's too close to the full value of your vehicle, meaning that the replacement cost wouldn't put much more strain on finances than the deductible itself. The deductible amounts are chosen and agreed upon by the policyholder when purchasing an insurance policy.

If full glass coverage is taken out, a claim can be filed to repair damage to the windshield and some insurers may exempt from paying a deductible if full glass coverage is taken out. Car insurance deductibles work as a prerequisite for filing certain types of claims since they ensure that policyholders don't file frivolous claims by making them pay a portion of the cost up front. For repairs to be done in a timely manner, it's always best to file a claim against one's own auto insurance policy, assuming they have the right coverage according to HPM Insurance. On the other hand, if not at fault, normally no deductibles have to be paid since at-fault driver liability insurance will pay for vehicle repairs and medical expenses.