Suppose you have been researching auto insurance in Moncks Corner & Charleston, South Carolina. In that case, you’ve probably heard of insurance deductibles – usually as a low payment hack. But what exactly is a deductible? And why do you have to pay for one?

Swamp Fox Agency will help you understand the answer and more. Deductibles are a crucial insurance instrument that offers more functions than just manipulating lower premiums. In a way, it’s a safety net against financial ruin from accidents or theft!

What Is an Auto Insurance Deductible? | Auto Insurance in Moncks Corner & Charleston

It is the amount of money you are supposed to pay out of your pocket before your insurance coverage is effective in the event of filing a claim. Typically, when you purchase an auto insurance policy, the deductible is the sum that you agree to pay for every claim you make.

The objective is to share the financial risk with your insurance provider. By paying a deductible, you take responsibility for some expenses for vehicle damage, accident, or traffic violations. At the same time, your provider carries the rest of the cost to the policy’s limit.

For example, you have a policy with a $600 deductible. Suppose you are involved in a traffic incident or an accident, and the vehicular repair costs come out to be $3500. In that case, you would have to pay the $600 out-of-pocket, and your auto insurance in Moncks Corner & Charleston would cover you for the remaining $2900.

The Perks Related to An Auto Insurance Deductible

The most obvious perk is that policies with higher deductibles offer lower premiums. That means you can significantly reduce your monthly payments when you pay a higher deductible on your auto insurance policy. However, you have to keep a contingent amount of savings that cover the deductible in the event of a vehicular incident. Otherwise, the insurance won’t cover you.

The deductible also acts as a deterrent to frequent & frivolous claims by the insured party. By holding the policyholder responsible for a portion of the claim, insurers ensure that minor incidents or unrelated repairs are not submitted as claims, keeping fraudulent activity at bay and providing only the factual claims that come through. Effective oversight keeps insurance costs stable for everyone.

Lastly, the notion that one may have to fill out a portion of the costs before insurance swoops in to save the day breeds safer & more responsible drivers. So, deductibles help bring down costs on the monthly payments and incentivize safer driving on the roads.

When Do Auto Insurance Deductibles Apply?

Suppose you have auto insurance in Moncks Corner & Charleston or are looking for a policy. In that case, you must pay a deductible for the collision & comprehensive coverage. While deductibles range from $100 to $1000 depending on your policy, the insurer will set a limit of liability, which is the max amount they will cover for you.

Liability & uninsured motorist coverage is required by law in South Carolina and adjoining states. However, you don’t need to pay a deductible for the liability coverage. Liability insurance helps cover the legal & medical expenses if you are being held responsible for causing injury to another in a vehicular incident.

Stay Protected on The Go with An Auto Insurance Policy!

Swamp Fox Agency was founded on the principle of quality insurance for as many individuals & businesses as possible. We have always achieved that goal by prioritizing our customers & sharing insights on how to make insurance policies affordable & manageable.

If you are shopping for a suitable policy & need further details on deductibles, feel free to call us at (843) 628-0280.