No matter how safe of a driver you are, you’re still vulnerable to accidents caused by other drivers. Dealing with a car accident can be stressful and time-consuming, especially when it’s an accident that’s not your fault.
Car Insurance Deductibles
A car insurance deductible is the amount of money you agree to pay out of pocket when you file an insurance claim. Once you pay this amount, your insurance company will cover the remaining cost for damages (up to your policy limit).
A deductible is commonly required with collision coverage, which is coverage that would protect you in an accident that’s not your fault. You’d also pay a deductible with comprehensive coverage and sometimes with uninsured or under-insured coverage.
Paying Your Deductible
You generally have to pay your deductible up front in the event of an accident. Once it is determined that the accident isn’t your fault your insurance company will recover the cost and issue you a refund.