When a consumer in the Cromwell area files an auto insurance claim, it is likely that he or she will have to pay a deductible. This is the amount of money that the consumer has to pay when filing a claim. If the insurance claim results in more money than the deductible, the insurer will pay the rest. It can be difficult to figure out what deductible to choose when buying auto insurance in Cromwell, CT.
The deductible was determined when the consumer initially purchased the policy from companies such as Rice, Davis, Daley and Krenz Inc. The lower the deductible, the higher the premiums for the policy. As the deductible gets close to zero, the premiums will go up a lot more. For example, lowering the deductible from $500 to $50 is going to be a lot more expensive than lowering the deductible from $1000 to $500.
The deductible is usually paid to the company that is fixing the car. The insurance company will pay the bill minus the deductible. That means the deductible will need to be paid by the consumer. If the deductible is paid directly to the consumer, the full amount minus the deductible will be paid.
It is often possible to get the deductible back when multiple parties are involved. If the other party is found partially or completely at fault for the damage, the other party’s insurance will pay for all of the damage. As a result, the consumer will receive the deductible back. However, it is not a good idea to count on getting the deductible back. The process to determine fault and to refund the deductible paid can take many weeks or even months.
When choosing the deductible on auto insurance in Cromwell, CT, it may be best to choose a higher one. Although lower deductibles are easier to claim, they may result in a negative insurance record which will be visible to all insurers. To avoid excessive claims that may eventually result in premium increases, it’s best to choose a higher deductible so that claims are not filed on claims of lesser value.
Finally, those who are financing or leasing their vehicles should check their loan or lease documents to see if there is a minimum deductible requirement. If there is, it is required that the consumer meets or exceed the minimum deductible. Click here to know more.
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