12/13/2011 - Things to know about deductibles
When it comes to learning about the details of an auto insurance
policy, one of the most important things to know about is the deductible, according to the Insurance Information Institute.
As III defines it, a deductible is the amount of money a policyholder pays out of pocket for a car repair before the insurance company makes up the difference. For instance, if a consumer has a $500 deductible, any damage done to a vehicle that's $500 or less is paid by the policyholder. Anything above that amount is covered by the policy.
However, III says that deductibles are often handled differently depending on a variety of factors.
For example, while a deductible is used for property damage, it generally isn't used for the liability portion of an auto insurance policy. And among states, deductibles are incorporated into the language of a policy differently, depending on how insurance laws are regulated there.
To learn more about deductibles and how they relate to homeowners and auto insurance policies, click here