When you purchased your auto insurance policy, you probably remember selecting a deductible amount along with the coverages you wanted for you and your vehicle. A higher deductible usually means lower premiums, but it also means that you may have to come out of pocket more when you file a claim. What is a deductible exactly? A deductible is what you are required to pay out of pocket before your insurance company is going to cover certain damages [Source: Esurance]. Damages might include the cost to repair the damage your vehicle sustained or the medical expenses that accrue for the care rendered to treat your physical injuries.
So, let’s say you were recently involved in an auto accident where you crashed your vehicle into a wall that left the front of your car severely damaged. When you go and submit your claim through your insurance carrier, you might be surprised to find that they aren’t willing to write you a check for the cost of repairs up front. And why is this? Well if you have a $1,000 deductible and your insurer has determined that your vehicle’s damage is worth $1,500, you have to pay the first $1,000 before they will cover the remaining $500.00. Therefore, your deductible will affect your car accident claim in that you must fulfill your deductible amount before your insurance coverage will kick in. Dan’s Fix-A-Dent is not going to release your vehicle to you until you pay the bill in full, so don’t forget to bring your checkbook.
This is why it is extremely important that you understand what a deductible is and how to choose the right amount when you first purchase your coverage or renew your policy. So, here are a few things to consider concerning auto insurance deductibles.
- When you choose a higher deductible amount, you are going to be paying more out-of-pocket expenses. In the event you have a fender bender, expect to pay the amount of your deductible or less based on how much damage has been done. While this might be an inconvenience at the time of an accident, remember, a higher deductible means you are paying a lower monthly premium. If you drive like Mario Andretti at the demolition derby you may want to take a second look at your deductible.
- Now, the lower your deductible is, the better the coverage. When you select a lower deductible amount, you are only required to pay that amount after an accident and then your insurer will cover the rest. Obviously, you will need to have adequate coverage for your policy to cover all of the remaining damage after you satisfied your deductible, but that means less is coming out of your pocket after a collision. However, when you purchase a policy with a lower deductible, you will be paying more each month. It all comes down to whether you want to definitely pay now or potentially pay later.
So, before choosing a deductible, you should first assess your financial situation to determine what you can afford and then consider where your drive and the likelihood of an accident occurring. If you are a newer driver or believe you are living in the Fast and Furious movies, that may sway your decision. Now, if you have been injured in auto accident, and you are having trouble collecting the compensation you are entitled from the insurer, consider contacting Greenville, SC car accident lawyer Paul Hammack.
Our Client Bill of Rights offers a 30-day unconditional satisfaction guarantee —no costs and no fees. We serve our Greenville clients in all areas of personal injury, including auto and motorcycle accidents, truck accidents, and boating accidents.
To get started with our Greenville personal injury law firm, please simply contact us online or call (864) 766-7108 for a free consultation.
With over 25 years of legal experience, Paul Hammack provides his clients with a level of trial expertise and strategic insight rarely found in personal injury litigation. Having spent the first eight years of his career working within major insurance defense firms across Georgia and South Carolina, Paul gained an intimate understanding of the “other side’s” playbook. This insurance industry background serves as a unique differentiator for his clients; he knows exactly how insurance carriers evaluate risk and what motivates them to pay top dollar for a claim.
In 2008, Paul founded Hammack Law Firm to move away from the “plaintiff mill” model and focus on building personal relationships with those he represents. As a seasoned litigator, he has tried dozens of first-chair cases to verdict, specializing in high-stakes litigation involving catastrophic injuries and complex truck accidents. His dual-state practice allows him to provide aggressive representation across both South Carolina and Georgia, ensuring victims of negligence receive the maximum financial compensation possible regardless of which side of the state line the accident occurred.
Paul’s commitment to excellence is reflected in his record of significant achievements, including a $10 million tractor-trailer wrongful death settlement and a $3.9 million moped-versus-truck recovery. His credentials and bar admissions in both South Carolina and Georgia underscore his deep roots in the regional legal community. Beyond the courtroom, Paul is a dedicated advocate for his local community, contributing his time and resources to organizations such as the United Way, Red Cross, and Hands On Greenville, all while working to make South Carolina a safer place for everyone.
