What does the expression 100 deductible mean in an insurance policy?

Answer 1

It is a reference to the collission and comprehensive coverages, which both pertain to physical damage to a vehicle. When damage occurs that is covered by the policy, the insurer assesses ("adjusts") the amount that it will cost to repair. A "$100 deductible" means that the policyholder pays the first $100 toward the cost of repair, and the insurer pays the balance.

In general, the lower the collision/comprehensive deductibe that you select, the higher the premium for the coverage. This is because the insurer's responsibility for payment of repairs is triggered at a lower damage figure. Therefore, if you can, you might consider increasing the deductible (which would effectively mean self-insuring for a greater amount). If you have no claims, the money saved in the reduced premiums could be applied to what you may have to lay out in the future toward a deductible if you do have a claim.