August 26, 2005
Car Insurance Deductibles
First you need to understand what a deductible is and how it affects you and your car insurance.
A deductible is the amount of money you agree to pay toward damages in the event you smash into someone or get smashed into. Deductibles also apply to damage caused to your car from anything not caused by an accident, like some juvenile delinquent dropping a sack of tomatoes on you from an overpass, getting your car egged by that same kid, or, when that future menace to society gets a little older and actually steals your car.
If you’re smart or cautious or clairvoyant enough to have taken out collision and comprehensive insurance, the insurance will pay for all the damages EXCEPT for what you’ve agreed to pay. That exception is the deductible. Throttling that kid is not an car insurance option, and your policy won’t help much if you’re in jail.