Mar 21 2011

What is a deductible in auto insurance?

Category: Auto Insurance

Answer:

Auto InsuranceAn auto insurance deductible is the amount the policy holder is responsible for paying in the event of a car wreck or damage. Most auto insurance companies required the policy holder to pay a portion of damages in a preset amount, as determined by their policy. Deductible requirements will often vary by state, but most are typically offered in amounts of $100, $250, $500 and $1,000. The higher you agree to pay as a deductible, the lower your monthly auto insurance premiums will be. The amount of the deductible you decide to pay will often be determined by how often you foresee yourself filing insurance claims. Older, more experienced, drivers might opt for higher deductibles to lower their monthly premiums while younger drivers may opt to do the opposite.


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