Understanding the role a deductible plays when insuring a vehicle or property is an important part of your insurance policy.

  What is a deductible? When there is an accident or loss, you are responsible for paying toward the insured loss. The deductible is that amount of money. This money is subtracted from your claim payment.   The deductible is a way that the risk ownership is shared between you, the policyholder and the insurer.  As a general rule, you pay less on premiums when you have a higher deductible.   A deductible can be either a specific dollar amount or a percentage of the total amount of insurance on the policy. This is usually outlined in the declarations page of your policy.   How do deductibles work? For dollar amount deductibles, the designated amount will come off the top of your claim payment. If you had a deductible of $500 and you have a loss worth $10,000, you would receive a claims check for $9,500.   If you have a percentage deductible on your homeowners policy and your home is insured for $500,000 at a 2% deductible, $10,000 would be deducted from any claim payment. In the event of a $50,000 loss you, you would be paid $40,000. In the event of a $25,000 insurance loss, you would be paid $15,000.   Auto insurance and homeowner’s policy deductibles apply each time you file a claim.   Deductibles apply to property damage generally, not to the liability portion of homeowners or auto insurance policies.   Can raising my deductible save me money? Yes. Remember that in the event of a loss, you’ll be responsible for the deductible, so make sure you are comfortable with the amount. When shopping for insurance or when you are comparing policies, make sure you ask about the options for deductibles.   Increasing the dollar deductible from $200 to $500 on your auto insurance can reduce collision and comprehensive coverage premium costs. Going to $1,000 as a deductible may save you even more.   Most homeowners and renters policies offer a minimum $500 or $1,000 deductible. Ask to see if you can raise this and save money on the cost of the policy.   Call our office today to talk about disaster deductibles depending on the area you live in. There is hurricane, wind/hail, floor, earthquake deductibles to consider.   Keeping you protected,   Rick   All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial,  workers compensation, and much more!   Call us today for a free quote at (303) 932-1700