Select Page

Insurance Deductibles Explained in a way you can actually understand

What Is A Deductible?

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.

Get Your Insurance Quote in Minutes!

Get In Touch

At Morison Insurance we represent dozens of Canada’s best insurance companies. All provide competitive prices, excellent service and outstanding claims service. We will shop at all of these companies to get you the best insurance for your individual needs.

Morison Insurance Brokers Inc. Logo