Car Insurance FAQs #4

The appraiser who took care of my claim said I would be responsible for paying the deductible. What is a deductible?

A deductible is the portion of a claim you agreed to pay when you purchased your insurance policy. The deductible could be applied each time you have a claim on your auto policy.

How do I decide the amount of my deductible?

Deductible amounts vary according to customers’ needs. If you select a larger deductible you might lower your premiums. But you also don’t want your deductible so high it causes you financial hardship at the time of the claim.

Do I pay my deductible if I am not at fault?

Yes. Payment of your deductible is not related to fault. You select your deductible with your individual needs in mind when you purchase your policy. However, in some situations we can recover all or part of your deductible from the insurance company or liable party of the driver who was at fault.

After a recent accident, I rented a car while my vehicle was in the shop for repairs. The auto rental company recommended their damage waiver. Should I have purchased it?

The answer varies with your specific situation. Keep in mind – Most auto rental companies require you to have comprehensive and collision coverage on your insurance policy. If you don’t, the rental company will require you to purchase their damage waiver.

If you damage the rental car, the rental company might charge you for costs which have nothing to do with who was at fault. They might charge administrative fees to cover claim processing, and they might charge you for lost revenues while the vehicle is being repaired. Since these are not actual physical damages, your auto policy would not cover these charges.

What if I get an estimate from the shop and it differs from the estimate prepared by your appraiser?

Our appraiser will write a repair estimate on the damages to your vehicle. Please provide the shop a copy of our estimate. If the shop has any questions, please have them contact our appraiser before the repairs are made.

I upgraded my car stereo system beyond the basic equipment. If I have a claim, will my upgraded stereo be covered?

It depends. You really need to talk to your financial representative to make sure you know what’s covered. Once you purchase stereo equipment beyond what is normally found in the vehicle, you might find you need to increase your coverage. Some insurance companies offer a special device endorsement for this purpose.