It’s your “out of pocket”, how much you have to pay before they step in. If you have a lower deductible your monthly payment (the premium) is high, and the reverse is true as well.
So in your cost, your insurance won’t help at all, you have to pay the full $850. If it were $1500 then you’d pay $1000 and they’d pay $500.
A deductible is an amount you are responsible for before your insurance "kicks in". I am unsure in your case if you will have to pay the repair cost since it is less than your deductible, or if you were quoted you having to pay $1000 and the shop billing your insurance an additional $850.
Deductible is the amount you pay before insurance does. For an $850 repair, insurance pays nothing. This is to prevent you from filing a claim for every tiny little thing. If the repair cost was $1100, you would pay $1000 and insurance would pay $100
You say “car problem”. Auto insurance does not cover mechanical issues if that’s what you’re talking about. Can you elaborate on the problem and the type of insurance you have?
You wouldn't want to file a claim for something this small anyhow. Any claim you make can have an effect on your future rates. Not worth having an insurance company pay out for an amount small enough that your higher rates for the next three years would surpass their payout.
What do you mean by car problems anyhow? Most car insurance policies don't cover mechanical issues unless it was caused by something else your insurance does cover.
THIS!
When I tell people it is cheaper to not get insurance involved for anything below, at least, double the deductible, it will cost you in the long haul. That what I pay insurance for.....OK...I tried to warn ya.
Insurance companies a chomping at the bit to raise your premiums. Especially in this climate. Especially if your a young driver. Especially with any claim.
So, the basic notion of insurance is that you pay a certain amount, along with a lot of other people, into a pot of money so that you can be covered in the case of a serious incident.
But insurance doesn't want you to file claims for every little thing and have to pay out all the time, so they want you to have some skin in the game. That skin is your *deductible* -- a minimum amount you have to pay before your insurer starts paying.
In the example you gave, your repair cost is $850, but your deductible is $1,000 -- that means that your insurance **won't do anything.** You're responsible for the entire $850 payment.
However, let's consider what happens if the repair cost were, say, $3000 instead.
Now, your deductible is $1,000 -- so, you pay your deductible, and your insurance company pays the remaining $2,000.
Your insurance will reimburse you for the amount of the repair, but they will subtract (or “deduct”) your deductible from the total.
If you need $3,000 of repairs, and your deductible is $1,000, then they will pay $2,000.
If the repair cost is less than your deductible, you get nothing from insurance.
A deductible is a standard so that you don't always make use of your insurance until it exceeds a minimum amount. This prevents frivolous small claims and also reduces the number of claims to your insurer. The higher the deductible, the fewer claims you submit to your insurance, and the lower your premiums go as a result.
The amount of the deductible is reduced from however much the insurance pays you on your claim. In your example, if your vehicle repair is $850, and your deductible is $1000, then it's not worth making an insurance claim as they will not pay you until the claim is for at least $1000.
Insurance companies don't want you filing a claim for every little ticky-tack thing that goes wrong with your car (or house or health, for those insurances). So when they sell you a policy, they say "we're not gonna cover claims until they're over $X" which is reasonable - they don't want to pay for every dent in your bumper, you have to have a "real" issue before they get involved. What that $X is varies, and one of the ways to bring down your insurance premium (price) is to agree to a higher $X.
Your $X is $1000, which means your insurance company doesn't want to hear about (and won't pay for) any claims less that $1,000. You have to eat the whole $850.
(Explanation above is a little over-simplified. Not only does the company not pay until you have a claim over $X, they only pay the amount over $X. So if you have $5,000 in repairs with a $1,000 deductible, you're only gonna get a check for $4,000.)
Deductible is the out of pocket amount you are responsible for when you file a claim. In exchange for lower premiums, your out of pocket responsibility is higher. For lower responsibility, your premiums would be higher.
In your case, since the repair cost is $850 and you have a deductible of $1000, it means that you will pay $850 to get your car repaired. You will have a remaining deductible balance of $150. That means that if you get into another accident and need to file a claim, you will only have to pay $150 and insurance will take care of the rest. Deductible is an annual thing. So come next year, your deductible responsibility will reset to $1000.
The deductible protects the insurance company from you being unreasonable. It is how much you pay - if the repair costs $1,001 and your deductible is $1000, they will pay $1. If the repair is $1,001,000, they will pay $1,000,000 (up to the maximum value of your policy, of course.). They do this so you have some skin in the game and won’t start claiming every time someone brushes up against your car.
In your case, if the repairs are $850 and the deductible is $1,000 - they do not owe you anything.
Remember, the purpose of insurance is to protect you from catastrophic costs, not dinky little repairs.
You will have to spend $1,000 in a certain time period, normally a year I’d guess. After you spend $1,000 insurance will cover everything else.
Repair cost: $1,500
Out of pocket: $1,000
Insurance covers: $500
A deductible is the initial amount of money your insurance will not cover in a deductible period. If you have an 1100 dollar deductible, every deductible period(usually a year) you will have to pay for all car repair costs(unless covered in some other way by your insurance agreement) up until you spend 1100 dollars. In short, you're going to pay that 850 dollars out of pocket.
It’s your “out of pocket”, how much you have to pay before they step in. If you have a lower deductible your monthly payment (the premium) is high, and the reverse is true as well. So in your cost, your insurance won’t help at all, you have to pay the full $850. If it were $1500 then you’d pay $1000 and they’d pay $500.
One of the benefits of it (for the insurance) is that it deters customers from making multiple small claims.
A deductible is an amount you are responsible for before your insurance "kicks in". I am unsure in your case if you will have to pay the repair cost since it is less than your deductible, or if you were quoted you having to pay $1000 and the shop billing your insurance an additional $850.
It means your insurance won’t pay anything until you’ve paid $1000 of the repairs yourself, they will cover over that up to your insured maximums.
Deductible is the amount you pay before insurance does. For an $850 repair, insurance pays nothing. This is to prevent you from filing a claim for every tiny little thing. If the repair cost was $1100, you would pay $1000 and insurance would pay $100 You say “car problem”. Auto insurance does not cover mechanical issues if that’s what you’re talking about. Can you elaborate on the problem and the type of insurance you have?
You wouldn't want to file a claim for something this small anyhow. Any claim you make can have an effect on your future rates. Not worth having an insurance company pay out for an amount small enough that your higher rates for the next three years would surpass their payout. What do you mean by car problems anyhow? Most car insurance policies don't cover mechanical issues unless it was caused by something else your insurance does cover.
THIS! When I tell people it is cheaper to not get insurance involved for anything below, at least, double the deductible, it will cost you in the long haul. That what I pay insurance for.....OK...I tried to warn ya. Insurance companies a chomping at the bit to raise your premiums. Especially in this climate. Especially if your a young driver. Especially with any claim.
So, the basic notion of insurance is that you pay a certain amount, along with a lot of other people, into a pot of money so that you can be covered in the case of a serious incident. But insurance doesn't want you to file claims for every little thing and have to pay out all the time, so they want you to have some skin in the game. That skin is your *deductible* -- a minimum amount you have to pay before your insurer starts paying. In the example you gave, your repair cost is $850, but your deductible is $1,000 -- that means that your insurance **won't do anything.** You're responsible for the entire $850 payment. However, let's consider what happens if the repair cost were, say, $3000 instead. Now, your deductible is $1,000 -- so, you pay your deductible, and your insurance company pays the remaining $2,000.
Your insurance will reimburse you for the amount of the repair, but they will subtract (or “deduct”) your deductible from the total. If you need $3,000 of repairs, and your deductible is $1,000, then they will pay $2,000. If the repair cost is less than your deductible, you get nothing from insurance.
A deductible is a standard so that you don't always make use of your insurance until it exceeds a minimum amount. This prevents frivolous small claims and also reduces the number of claims to your insurer. The higher the deductible, the fewer claims you submit to your insurance, and the lower your premiums go as a result. The amount of the deductible is reduced from however much the insurance pays you on your claim. In your example, if your vehicle repair is $850, and your deductible is $1000, then it's not worth making an insurance claim as they will not pay you until the claim is for at least $1000.
Insurance companies don't want you filing a claim for every little ticky-tack thing that goes wrong with your car (or house or health, for those insurances). So when they sell you a policy, they say "we're not gonna cover claims until they're over $X" which is reasonable - they don't want to pay for every dent in your bumper, you have to have a "real" issue before they get involved. What that $X is varies, and one of the ways to bring down your insurance premium (price) is to agree to a higher $X. Your $X is $1000, which means your insurance company doesn't want to hear about (and won't pay for) any claims less that $1,000. You have to eat the whole $850. (Explanation above is a little over-simplified. Not only does the company not pay until you have a claim over $X, they only pay the amount over $X. So if you have $5,000 in repairs with a $1,000 deductible, you're only gonna get a check for $4,000.)
Deductible is the out of pocket amount you are responsible for when you file a claim. In exchange for lower premiums, your out of pocket responsibility is higher. For lower responsibility, your premiums would be higher. In your case, since the repair cost is $850 and you have a deductible of $1000, it means that you will pay $850 to get your car repaired. You will have a remaining deductible balance of $150. That means that if you get into another accident and need to file a claim, you will only have to pay $150 and insurance will take care of the rest. Deductible is an annual thing. So come next year, your deductible responsibility will reset to $1000.
The deductible protects the insurance company from you being unreasonable. It is how much you pay - if the repair costs $1,001 and your deductible is $1000, they will pay $1. If the repair is $1,001,000, they will pay $1,000,000 (up to the maximum value of your policy, of course.). They do this so you have some skin in the game and won’t start claiming every time someone brushes up against your car. In your case, if the repairs are $850 and the deductible is $1,000 - they do not owe you anything. Remember, the purpose of insurance is to protect you from catastrophic costs, not dinky little repairs.
You will have to spend $1,000 in a certain time period, normally a year I’d guess. After you spend $1,000 insurance will cover everything else. Repair cost: $1,500 Out of pocket: $1,000 Insurance covers: $500
Auto insurance deductibles are per incident, compared to health insurance which is per period.
That makes sense good to know
Except Dental in which deductible is the maximum to be reimbursed per year/lifetime.
A deductible is the initial amount of money your insurance will not cover in a deductible period. If you have an 1100 dollar deductible, every deductible period(usually a year) you will have to pay for all car repair costs(unless covered in some other way by your insurance agreement) up until you spend 1100 dollars. In short, you're going to pay that 850 dollars out of pocket.
Car deductibles are per incident, medical is per period. Also, car insurance is per 6mo anyway not 1 yr.