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What Happens If You Can’t Afford Your Deductible?

Published on January 1st, 2019

When you purchase Illinois vehicle auto insurance, your deductible is the amount of money you must pay out of pocket before the insurance company begins to cover the cost of repairing your vehicle.

Types of Auto Insurance

Unlike health insurance plans covering all types of medical care, car insurance is broken up into multiple types of coverage. Liability insurance, for example, covers bodily injury and property damage you have caused and typically does not have any deductible.

In contrast, deductibles are found in two other types of auto insurance coverage.
-Collision coverage – This covers damage to your vehicle when you’re in a crash with another vehicle or any stationary object. Collision coverage pays for the damages to your car but not the damage you caused to other people’s property.

-Comprehensive coverage – This covers damage to your car in all instances except a crash in which you’re at fault. Examples would be damage from a hail storm or falling tree limbs.

How Deductibles Work

The deductible amount in your policy is applied to the cost of repairing your vehicle. For example, if you have a policy with a $1,000 deductible, and you’re in an accident that does $3,000 in damages to your car, you’re responsible for paying $1,000 of the repair cost. The balance of $2,000 would be paid by the collision coverage you have on your vehicle after you’ve paid the deductible.

Your Options If You Can’t Pay

If you can’t pay the deductible, you basically have two options:
-Borrow or sell – You might borrow the money needed to pay the deductible or consider selling some possessions for ready cash.

-Keep driving – If your car is not heavily damaged and is generally safe, continue driving it while saving money for the deductible. You can also use that time to shop for the best repair deal.

Choosing Your Deductible

Picking the deductible that’s right for you is a delicate balance. With a lower monthly premium, your deductible will be higher, and when you purchase more coverage with a higher premium, your deductible comes down. Your deductible should be an amount you could pay without seriously damaging your financial situation.

Call Today

For the very best Illinois vehicle auto insurance, contact Accurate Insurance today at 1-800-999-1034 and let us work with you to find the coverage and deductible that best meet your needs and your budget.

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