What you need to know about your insurance deductible

JInsurance Deductibleust about everyone with property nowadays has an insurance policy. Weather you have a car or a business you’re required to carry insurance to protect both you and those around you. These type of insurance policies carry specific deductibles. In this article we’ll go over what an insurance deductible is and how you can take advantage of it.

What is an insurance deductible? A deductible is a payment made to your insurance company BEFORE they pay out on agreed policy limits. Example: You have a business auto insurance policy with both comprehensive and collision coverage (what most like to call “full coverage”) and you accidentally run into your clients garage damaging both the garage door and your own business vehicle. The door is covered under the property section of your policy with no deductible, your own vehicle though isn’t. You need to pay the agreed deductible before your insurance company pays out to repair your vehicle.

How does the deductible affect your total policy premium? Most insurance policies will give you a lower insurance premium if the deductible is higher. We’re not saying to go out and have your current agent raise your deductible as high as possible, it needs to make sense. How much can you come up with in an emergency if you were to get into an accident? 500? 800? 1000? How much of a difference will you save? If you raise your deductible to 2500 from 500 and you save $50 it obviously wouldn’t be worth it. The way insurance companies see it, if you have a higher deductible you’re less likely to use it, especially on smaller claims.

What should your current deductible be? Call or email us right now and speak to a licensed broker. We have access to multiple insurance carriers, some that have more deductible sensitive premiums than others.

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