A deductible is part of an insurance policy that the insured pays out of their own pocket. This is the amount of money the insured person needs to pay before the insurance company will pay the claim. For example, with a deductible of $100 and damage of $300, the insured will need to pay $100 before the insurance company pays the remaining $200. There are policies that can help the policy holder pay less money in certain cases if there is a car insurance deductible waiver.
The policy holder determines the amount of the deductible knowing that the deductible amount influences how monthly premiums cost. Higher deductibles will result in lower premiums and vice versa. Deductibles can be part of comprehensive and collision coverage. Comprehensive coverage will account for all damage to a vehicle that is not caused from another vehicle that be from a storm or running into a deer; it also covers theft. Collision coverage is used for any damage to a vehicle that comes from another vehicle.
In some situations the policy holder can receive a car insurance deductible waiver. These waivers mean that policy holders do not need to pay the deductible in order for the insurance company to pay the benefits of the policy. Waivers are available only in certain situations.
For broad collision coverage the deductible can be waived if an insurance adjuster deems that the policy holder was responsible for less than 50% of the damage. This waiver might come about in the event the insured's car is parked legally and another car hits it causing damage. In this case the fault is entirely with the other driver. However, if the insured is found to be responsible for 50% or more of the damage, the deductible will need to be paid.
Some policies offer waivers that can protect drivers from accidents with uninsured motorists. In the event that an insured driver is involved in a collision with an uninsured driver, and the uninsured is at fault, the insured driver will not need to pay whatever there deductible is because the insurance company will waive it. Other polices may include comprehensive glass replacement, so that any damage to a windshield or window will be covered entirely by the insurance company with no deductible paid.
Most often insurance companies are not responsible for the entire amount of damage that a vehicle receives. The insurer needs to pay a deductible before the insurer will pay the benefits on a policy. There are, however, polices that include car insure deductible waivers in certain situations. These can save the insured from paying deductibles if they are not at fault.