The issue of car insurance raises many concerns and there a large number of considerations that need to be taken into account before purchasing a policy. Liability cover, personal injury protection and knowing how your insurer will deal with a claim are just a few of the issues that need to be thought about when a new policy is taken out. However, the subject of deductibles is another common area where many consumers are left confused.
What is a deductible?
The deductible is effectively an initial payment that must be made by the policyholder before an insurance company will settle the outstanding amount of a claim. This is a pre-agreed amount that the policyholder will be liable for to help cover repairs. In most cases, a higher deductible figure will result in a lower insurance premium.
What should I be paying?
Realistically, the policyholder should always select a deductible figure that they can afford to cover if they become involved in a road traffic accident. The deductible figure should not be set so high that it will cause financial hardship if an accident actually occurs.
Do I lose my deductible after an accident?
Drivers who are found to be at fault in an accident will usually lose their deductible costs. However, a case can be raised with the subrogation department of your insurance carrier once the repair work to a vehicle has been completed. If the policyholder is found to be the innocent party in an accident, there is a good chance that some or all of the deductible payment can be recovered.