| The Details of An Automobile Insurance Deductible |
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| Written by Graham McKenzie |
| Saturday, 13 March 2010 10:33 |
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When the hurdle of finding automobile insurance is cleared. The insured person that is liable for the premium payment should read and absorb the detailed policy before any money changes hands. The contents of a policy may need interpretation via the insurance company.
When the hurdle of finding automobile insurance is cleared. The insured person that is liable for the premium payment should read and absorb the detailed policy before any money changes hands. The contents of a policy may need interpretation via the insurance company. The policy can be manipulated to fit a budget. The excess or deductible is the amount subtracted from the sum received for repairs as a result of a wreck. Sometimes this is presented as a percentage of the vehicle value, and other times it is a fixed amount. Excess is a term used on policies instead of the word deductible. Either way, this is defined as the expense that will have to be compensated by the owner and operator of the crashed vehicle. When a percentage is used to find the amount of a deductible. The total amount the will be needed to fix the vehicle is assessed. Then the percentage will be subtracted from that. The insured pays the percentage and the insurance company pays the rest. It is urgent to make sure the insured will benefit financially from an accident. Use common sense when deciding if reporting an accident to your insurance company, is a wise decision. It may be a better financial decision to repair the vehicle on your own, or continue to operate it with a dent or two. Filling out a claim, will commonly increase the price of an insurance policy. Instead of filing a claim expecting the insurance company to pay for damages, you can utilize the route of receiving a benefit for not filing a claim. You cannot file a claim and use this benefit at the same time, these two options cancel each other. There may be an incentive via a credit to your premium, or a slightly lowered premium. Also you could be entitled to a payment from the insurance company. When reviewing a policy there will be several types of deductibles. There is one that is a base across the board for every insured consumer that chooses the company. The others are used as a method to raise the amount the insured is responsible for, in order to decrease the monthly amount paid. Sometimes the choice of an additional deductible is out of your hands. When a new driver is added to a policy, the risk level increases and an extra amount will be added to the original deductible. Another example limiting the choice in this matter, is attempting to add an individual that constantly violates traffic laws, or has frequent accidents. To sum it all up, there is an amount of deductible defined in a policy. The insurance company usually will give the holder the freedom to adjust this amount, if it seems logical. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal |