What is a Car Insurance Deductible?

By Amy Nutt

Car insurance is not only a necessity when driving a car, it is also the law. When drivers purchase car insurance, they are required to pay a car insurance deductible. The deductible is part of every drivers insurance policy and they are responsible for paying it. Basically, a deductible is the amount of money that a driver is willing to pay for the insurance coverage. Deductibles differ by state, but generally, they can be $100, $250, $500, $1000 or $1500. For instance, if you had a deductible of $1000, and received damage to you car in the amount of $5000, you would pay $1000 and the insurance company would pay $4000. This money must be paid before your insurance company will pay your claim.

Selecting a deductible is an important decision because it will affect the cost of your premium. The higher the amount of the deductible that you choose, the lower your insurance premiums will be. You could possibly save up to 20 percent. Comprehensive and collision coverage are associated with the insurance deductible. Comprehensive covers any damage to your vehicle other than another car. This can include hail, ice pellets, physical damage such as vandalism, or hitting something such as a deer...etc. Comprehensive insurance also covers theft. Collision insurance covers damage caused to your car as the result of a collision with another vehicle.

Although the higher the insurance deductible, the lower the premium, you will still have to make sure you can afford the deductible in the event that you have to make a claim. It is important that set aside the amount of the deductible such as depositing it in a specific bank account. If you cannot deposit the entire amount, make regular deposits to make up for the shortfall until your reach the total amount.

Most car insurance companies provide deductible calculators on their website. Before you decide which deductible you will use, compare policies and how much each costs. If you need further information, contact an insurance agent.

Every driver has to consider how much money they can afford for coverage each month. It is important be informed about car insurance policies and their deductibles. This coverage is how your vehicle will be protected in case of a vehicle accident or damage. Choosing auto insurance deductibles is based on personal choice. The best choice is what best suits a policyholder's specific needs. An important factor in choosing deductibles is the price and how difficult it would be to obtain the car insurance deductible in the event of an accident. To find out the difference in prices, get several quotes from different companies. A general rule is: choose deductibles as high as you can afford.

The purpose of the car insurance deductible is to dissuade drivers from using their insurance policies for minor claims. If a driver has $500 in damages, and a $500 car insurance deducible, he most likely will not make a claim. By knowing and understanding what your state requires, how much coverage you can afford, how much you are willing to pay for insurance, how often you think you will make a claim, and how much of a deductible you can pay, you will be able to choose the right policy to meet your needs.

The History Behind Car Insurance & The Protection It Provides

By Marcus Worthon

Being one of the most popular and most sought after insurances in the world, car insurance is definitely one of the most talked about insurance policies as well. Be it the Us, Europe or Asia, it is mandatory by law, for people driving cars on public roads to own car insurance.

Have you ever wondered where did it all begin? In this write up, we try and explore some of the reasons and incidents which led to the foundation of car insurance policies and laws relating to them. The earliest hints of vehicular insurance com from ancient China, when the west was opening up to this far land.

Later, the concept of car insurance got a whole new twist. Policy makers from all over the world got together and decided that owning a vehicle and driving it on public roads (roads, in most parts of the world are considered to be the property of the public) was a privilege.

Policy makers in the US were strictly bent towards the idea that if you own a vehicle and drive it on public roads, you ought to have car insurance in order to prevent damage to any third parties. It was this thought process that made the ownership of car insurance mandatory in the US and in the rest of the world as well.

While car insurance policies in the US can be traced back to the early 19th century, he first law, making car insurance policy mandatory for people owning cars and driving them on public roads, came into effect in 1927 in Massachusetts. Right after this law was passed, its acceptance was widespread, not only in the US, but also In the rest of the developed and developing world. With the number of cars (and consequently, the number of accidents) on the rise, such laws have been welcomed with open arms all over the world.

While the first law, making car insurance mandatory in 1927 in Massachusetts, real ground work had already been started in this field in the early 19th century. A number of car insurance policies were written and the first policy giving a full liability cover was written in 1895 in England. Soon, three years later, America saw its first such policy, penned down by Dr. Truman in 1898. Policies offering a full liability cover are the most popular and preferred of all car insurance policies because of the fact that they not only insure the vehicle, they also reimburse the vehicle owner for any damage that he might have caused to others.