Deductibles are the amount of money a person pays out of pocket when they file a claim. In the case of car insurance, there can be two types of claims or two types of car insurance deductibles;
- Comprehensive or other than collision claims / deductibles
- Collision claims / deductibles
Comprehensive or other than collision deductibles address a number of things including;
- A rock hits a windshield
- A tree falls on your car
- Someone “keys” your car
- Your car is swept away in a flash flood
- The car burns
- Someone backs into your car at the mall or other parking lot
- You hit an animal that runs into the road
The two most common are a cracked or chipped windshield and being nicked in a parking lot. Anything that’s not a collision falls into this category.
Collision deductibles apply anytime there’s an accident.
- It can apply if you’re the driver who’s at fault
- It can also apply if it’s the other person who’s at fault (this depends if you file on your insurance vs. their insurance)
Texas carriers provide a wide array of deductibles. Options include;
- $100
- $250
- $500
- $750
- $1,000
Here are 8 things you need to know about both types of deductibles;
- The lower the deductible, the higher the premium
- The higher the deductible, the lower the premium
- To find out what fits your budget best, have it priced at different levels
- Comprehensive & collision deductibles don’t have to be the same
- A higher comprehensive deductible doesn’t save you a lot
- A higher collision deductible will provide greater savings
- Before going with a higher collision deductible, determine how long it takes to cash flow the difference
- If you don’t have the deductible, you don’t have the coverage
Have a question about your car insurance deductible? Share it with us on our Facebook page on in the comments section below.
