Most drivers are familiar with their deductible; although the deductible is usually enforced, there are times when it is not.
This leads to the question, “when do you pay deductible car insurance fees?”.
There are some common examples of when a deductible applies and when it does not. But before that, learn everything you need to know about paying deductibles.
Once you’re familiar with how deductibles work, be sure to visit https://www.surex.com/insurance/auto-car/alberta to start comparing car insurance quotes with Surex.
What Is Deductible and When Do You Pay the Deductible for Car Insurance?
The price paid by the insured before the insurance company pays its portion of a covered claim is referred to as a deductible.
A deductible can be applied to both the collision and comprehensive coverages on both a private and commercial motor policy. Collision coverage pays for damage to an insured vehicle caused by a crash, whereas comprehensive coverage financially covers physical damage caused by an incident (other than a car crash or accident), such as fire, theft, or hitting an animal.
The average vehicle policy deductible ranges from $500 to $1000, and it is applied per event rather than per calendar year, as it is with some health insurance policies. Other coverages in an auto policy include liability, property damage, medical costs, and so on; however, these coverages usually do not have a deductible.
When paying a deductible, you only need to make an effort if your deductible is greater than the whole amount of losses you’ve sustained. Without contacting your insurance company, that effort would be allocated toward whatever services you require to restore the losses. In such a case, they’d deny you coverage. If the damages are greater than your deductible, your insurance provider will send you a check for the total value of the damages less your deductible.
What Is A Reasonable Deductible?
There is no one-size-fits-all answer to what constitutes a good deductible. It all relies on the types of benefits you want from your auto insurance and your total budget. There are a few fundamental guidelines to follow when deciding which type of deductible is ideal for your requirements.
In general, having a lower deductible means paying higher insurance premiums. This is due to the fact that in the event of an accident, your insurer will have to pay more. Your insurance premiums will generally be lower if you choose a greater deductible. Think about how much you’re willing to spend out of pocket if you get into an accident.
What Coverage Requires Deductibles?
According to experts, liability insurance may not require deductibles, but other types of auto insurance do. A deductible may be required for uninsured motorist coverage, although comprehensive and collision insurance almost always do. This deductible, usually between $500 and $1,000, is charged when your car is a part of a vehicular collision and suffers physical damage that requires repair, regardless of who is at-fault.
Now that we understand what a deductible is and what coverage it covers, let’s look at some criteria for when a deductible will apply to your auto insurance and exceptions;
You Are 100% “At-Fault” In An Collision.
To establish who should be judged “at-fault” in a car accident in Alberta, insurance companies employ a set of guidelines known as the Fault Determination Rules, defined in the Automobile Insurance Act. If you are found to be entirely at-fault, you will be required to pay your auto insurance deductible.
You Are Involved In A Collision Where You Are Not “At-Fault”
You do not have to pay the deductible on your automobile insurance policy if the parties’ insurance companies find that you are not at-fault in Alberta.
Even if you are not at-fault for an accident, you may be required to pay your deductible. Determining responsibility can take some time (and, in some situations, a lengthy time). The other driver’s vehicle insurance company is unlikely to cover any claims you file until the fault is established. If you want your car fixed before it’s found who’s at-fault, you’ll have to pay your deductible and hope to get it reimbursed later.
You Are Partially “At-Fault” In A Collision.
If the insurance companies involved judge that you are partially at-fault, you would only be responsible for a portion of the deductible. If you are found to be 50% at blame, you must pay 50% of your deductible.
An Unnamed Third Party Has Struck Your Vehicle (Hit & Run)
It’s a bad scenario to be in. You may not be insured for this type of loss if you do not have Collision coverage on your automobile insurance policy. You will be held financially responsible for any vehicular repairs or replacements to your vehicle in this case. If you can identify the motorist who hit your car, the loss will be financially covered under your insurance policy’s Direct Compensation section, for which you will not be required to pay a deductible. For this form of coverage to apply, the person who hit your automobile must also have insurance.
Your Car Has Been Vandalized Or Stolen.
The Comprehensive section of your automobile insurance coverage would cover the harm if your automobile were stolen or harmed. The deductible, on the other hand, must be paid.
If you’re unsure, ask your insurance agent what kind of coverage is best for you and whether you’ll have to pay a deductible if you file a claim.
How To Handle Deductibles
Deductibles are an unavoidable part of many types of insurance, but they shouldn’t prevent you from receiving the repairs you require after an accident. According to the pros, it’s always advisable to file a claim against your car insurance policy to get your repairs done quickly. Remember that regardless of who is to blame for the tragedy, this is the best course of action.
You should still submit a claim with your car insurance carrier if you are involved in a collision that is not your fault. Your insurer will always want to pay the least amount of money possible, so if they find out you’re not at-fault, they’ll go after the other driver’s insurance company for compensation.