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What Is a Comprehensive Deductible

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					What Is a Comprehensive Deductible?
Auto insurance is used to protect the owner of a vehicle from the costs associated with its replacement or repair due to vandalism, theft,
accidents or collisions. Whenever a person must file a claim for comprehensive payment from an auto insurance company, the car owner
typically must pay for a portion of the expenses, known as a deductible.



Significance
      o                 Comprehensive deductibles are related to comprehensive auto insurance companies. Comprehensive auto insurance
            pays for damages or theft in which the insured is determined to be not at fault.



Identification
      o                 The comprehensive deductible is an amount predetermined by the insurance company for claims and is disclosed in
            the insurance policy. Comprehensive deductibles typically range between $500 and $2,500.



Calculations
      o                 When the amount of the claim is determined, the insurance company subtracts the comprehensive deductible from the
            amount. For example, if a $10,000 claim had a $500 deductible, the insurance company would pay for $9,500 of the repairs or
            replacement, and the car owner would be liable for the remaining $500.



Benefits
      o                 Insurance companies assess comprehensive deductibles in an effort to keep costs down for the insurance company,
            which allows the company to charge lower premiums to customers.



Considerations
      o                  In some cases, it is more advantageous to not file a claim. This is the case when the deductible is more than the cost of
            the repairs, which may be the case for a minor theft or a chip in a windshield.

				
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posted:4/3/2011
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