A deductible is the amount you share if you have a claim. Generally a deductible is $1,000 for home insurance and $500 for auto insurance. If you have a high value home or a very valuable vehicle, a minimum deductible may apply. If you have an at-fault accident or need a new windshield, your vehicle is vandalized or hit-and-run for a few examples, you would pay the first $500, and your insurance company would pay the balance. On the homeowner’s side, if you had a fire or a break in or a windstorm damaged your roof or caused a tree to fall on your property for some examples, you would pay the first $1,000 and your insurance company would pay the balance.
Often people use their deductible as a guide to determine if they want to make a claim or not. Most people want to safeguard their claims free status and the discounts, perks that come along with it. If a loss is minor and around the amount you would need to pay, they may decide not to proceed with a claim for a minor event.
There are some examples where a deductible may be waived, or not applied. Some examples include to repair a stone chip in your windshield, or if you are in a not at fault accident.
Some companies offer the opportunity for their customers to have a disappearing deductible. This means it will get a little lower each year you are claims free until it has disappeared all together.
For more information please contact a broker at Morison Insurance.
This content is written by our Morison Insurance team. All information posted is merely for educational and informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information in this article, you do so at your own risk. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors.