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.