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Understanding Deductibles on Your Personal Auto Policy

By July 25, 2023No Comments

In today’s blog post, we will be discussing an important aspect of your personal auto policy – deductibles. Specifically, we will explore the two types of physical damage coverage: comprehensive and collision. We will also delve into the concept of deductibles and how they can affect your insurance costs. So, let’s dive right in!

Comprehensive Coverage:
One of the physical damage coverages included in your personal auto policy is comprehensive coverage. This type of coverage protects you against various incidents such as hailstorms, falling trees, and collisions with animals. In some states, it also includes glass coverage. Comprehensive coverage ensures that your car is repaired or replaced in case of damage caused by these events.

Collision Coverage:
The other side of physical damage coverage is collision coverage. This coverage comes into play when you get into an accident and damage your car. Similar to comprehensive coverage, collision coverage is designed to cover the costs of repairing or replacing your vehicle.

Understanding Deductibles:
Now that we have a basic understanding of the different types of physical damage coverage, let’s talk about deductibles. A deductible is the amount you agree to pay out of pocket before your insurance company begins to cover the remaining costs. Typically, personal auto policies have a deductible of $500. However, there is an opportunity to lower your insurance costs by raising this deductible.

Saving Money on Insurance:
In this current period of inflation, it is crucial to find ways to reduce expenses. One effective method is to increase your deductible on the physical damage coverage of your policy. By opting for a higher deductible, such as $1000, you can save money on your insurance premiums.

While raising your deductible can lead to immediate cost savings, it’s important to weigh the consequences. If you are involved in an accident and the damages amount to $900, you will be responsible for covering the entire cost. Similarly, if your car is totaled, you will need to come up with the full deductible amount out of pocket.

Having the Conversation:
As insurance providers, our primary goal is to help our clients save money without compromising on coverage. We understand the importance of having open and transparent conversations about deductibles. We encourage our clients to consider the potential savings against the potential financial burden in the event of an accident.

In summary, deductibles play a crucial role in your personal auto policy, particularly when it comes to physical damage coverage. Comprehensive and collision coverage protect your vehicle in various scenarios, and by adjusting your deductible, you can potentially save money on your insurance premiums. However, it is essential to carefully evaluate the financial implications of a higher deductible and have a thorough understanding of what it means for your coverage.

At Patriotic Insurance Group, we believe in empowering our clients with the knowledge and information they need to make informed decisions about their insurance policies. If you have any questions or concerns about deductibles or any other aspect of your coverage, please don’t hesitate to reach out to us. Stay safe on the roads!