Why do you need to pay a deductible for car insurance, if your paying a monthly bill?

  • by tory
  • Apr 25,2017
  • 12 answers

Why do you need to pay a deductible for car insurance, if your paying a monthly bill?


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Insurance Answers (12)

shainock 6 months ago

to avoid excesive claims

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Flower 6 months ago

Because they want more profit. Your monthly premiums are paid on top of a deductible if you have a claim. All insurance is like this including individual health insurance.

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g 6 months ago

You can set your deductible at any amount you wish, Troy. It can be anywhere between $0 and $1000. However, the lower the set deductible the higher the monthly, and vise versa.

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Casey Y 6 months ago

Its so you have some skin in the game. Take Medicaid as an example...I know you are probably referring to auto or something else, but this applies...
Medicaid, in some states, is currently experiencing cost issues since their co-pays and deductibles are too low or non-existent. If it costs you nothing to go to the emergency room, you will go there for any issue. If it costs you something, you might try to go to your actual doctor for the sore throat as opposed to the emergency room.
Insurance is designed to protect against large economic loss, not the nickel and dime stuff. Deductibles act as deterrents to filing small claims. For homeowners insurance, there are some carriers who flat out waive the deductible as long as the loss is adequately large.

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tro 6 months ago

if you want 100% coverage your premium will be higher, if you want a lower premium, you will pay some deductible, you actually can select what you want

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lucy 6 months ago

If you do not file a claim or have an accident, then you will pay no deductible.
The deductible applies to collision and comprehensive on your vehicle, if it is an accident, or stolen, vandalized etc.
Liability coverage pays for the (other) car damages if found at fault in an accident, and there is NO deductible under liability.

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Mike 6 months ago

A deductible sorts out the consumers for insurance and helps them balance their charges. If someone goes with a high deductible, it means they don't expect to need insurance so they pay a very low rate. If a person goes with a low deductible, it means they anticipate needing insurance often, so they are charged more.
It's a market-corrective technique to be fair and spread the exposure to liability fairly.

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nezhtal 6 months ago

You agree to pay a deductible in order to lower your monthly premium. You can get insurance with no deductible but you'd pay a lot more for it.

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Judy 6 months ago

You choose the level of the deductible when you buy insurance. The lower the deduxtilve, the higher the price of the insurance.

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sleepingliv 6 months ago

I'm willing to bet tory is the type to sign up for a credit card without even knowing the interest and penalties associated with the account.

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regerugged 6 months ago

It is to keep rates down and to eliminate nuisance claims. With no deductible, you can claim anything. A stone hits the front of the hood and causes a chip to the paint. It may be fixed for $20.00

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WRG 6 months ago

Because having a deductible lowers your bill. You can buy a policy that has no deductible it is just going to cost a lot more.

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