The Good Insurance Group, LLC

825 Central Road Suite 1
Bloomsburg, PA 17815

Get Directions
Pennsylvania Blog

What You Need to Know About Auto Insurance Deductibles

Most types of insurance—including auto—have a deductible. The deductible is the amount of money that you must pay out of your own pocket before the insurance company takes over and pays the rest. Here at the Good Insurance Group LLC, we know how confusing deductibles can be for Bloomsburg, PA residents, so we have answered some of the most commonly asked questions regarding deductibles below.

How Exactly Do Deductibles Work?

The deductible is a pre-determined amount that you will be required to pay after a covered event. The deductible is in place to help protect the bottom line of the insurance company and deter frivolous insurance claims from being filed.

For instance, if you caused an accident that resulted in $2,000 worth of property damage and you had a deductible of $500, then you would be expected to pay $500 before your insurance company would pay the remaining $1,500.

When Is the Deductible Paid?

As a general rule, you will need to pay the deductible when you file an insurance claim. However, if you are involved in an accident and not found to be at fault, you will not be responsible for paying your deductible. However, if the other party does not have insurance, you will need to pay your deductible in order to have your policy’s uninsured motorist coverage kick in.

How Much Should the Deductible Be?

There is no one-size-fits-all answer here. The higher your deductible, the lower your insurance premium. While a higher deductible will save you on your monthly payment, it may not necessarily be the best option for you.

When choosing your deductible, you need to consider what you would be able to afford to pay out of your pocket in the event of an accident. If you don’t like the thought of or wouldn’t be able to afford paying $1,000 on short notice, then you should seriously consider opting for a lower deductible.

If you have any further questions regarding auto insurance deductibles, do not hesitate to contact us. Serving the residents of Bloomsburg, PA, The Good Insurance Group LLC is happy to sit down with you to discuss your budget and needs in order to determine the most ideal deductible for your situation.