driving smart
What Is the Deductible?
Collision insurance is optional. But both collision and comprehensive insurance may include a deductible. What does this mean?
- This is an amount you agree to pay per claim or accident before any policy benefits apply.
- This is the amount of money charged for an insurance policy.
- This amount will be deducted from your premium if you're in an accident.
"A" is correct. For example, on an accident claim if your deductible is $500, you must first pay this amount before the insurance company will cover the remaining cost to fix your car. The premium is the amount you pay when you enter into a policy. It may be paid at the very beginning of the policy or in monthly or quarterly installments. If you choose to pay the premium in installments, you may be charged an extra fee of three to five dollars per installment.