|
Every vehicle insurance policy has a stated co-insurance amount called a deductible. This
amount is your portion of responsibility for the total claim (plus betterments). This amount varies based on each policy, but is set for the policy duration when you pay your premiums.
Keep in mind, your deductible amount may increase to lower or maintain your annual
insurance premiums. Carrying larger deductibles of $1000 or above may lower your annual insurance premium slightly, but be a burden on your finances if you need to use the insurance. You will
normally be responsible to pay your deductible directly to the repair facility upon picking up your vehicle if you are using your insurance to handle the claim.
Betterment is the additional amount your insurance company has determined you will be
responsible for to pay to the repair facility when picking up your vehicle. This is calculated for replacement of items with a relatively short "life expectancy" and you have
used a portion of it. It could also be calculated based on an item which prior condition was much lower than the new replacement condition. Some examples of items which may include betterment are:
tires, batteries, some mechanical parts, seats and interiors, panels that are rusted, and even paint.
This is determined during the estimating process ... so ask about any additional costs to
you other than your deductible.
|
