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How can comprehensive car insurance be cheap?
Comprehensive car insurance can be cheap by having a higher deductible, getting any available discounts from your insurance carrier, or having a lower amount of coverage. You can also have cheap comprehensive insurance by having a less expensive car.
If you allowed a friend to drive your car and he totaled it but his insurance company subtracted 500 from the check for the deductible why do you pay for his deductible?
Because this was an at-fault incident, the 500.00 deductible is your responsibility. You as the owner of the vehicle allowed your friend to drive the car to begin with. Your friend in all fairness should pay you the 500 dollars. Why is your friend's insurance paying you? Your own comprehensive/collision policy should pay you (less the deductible) and then "subrogate" the claim to your friend's auto or general liability insurance or sue him directly if he has no insurance and send you the deductible after they have collected.
What is the difference between deductible and premium?
The premium is what you pay for the policy. The deductible is what the insurance company will not pay for what is covered. For example you buy a car policy for collision. You pay the premium of $50. If you crash the car, the company will not pay any thing less than the deductible. If the deductible was $1000 and you sustained $1500 damage, the company would pay you $500. If the damage was less than the deductible, you get nothing.
Which is better 500 deductible or 1000 deductible?
It depends. If you plan on having a lot of claims against the insurance, 500 deductible is a better deal. If you only want the insurance to protect you from MAJOR disasters that don't usually happen in your life, 1000 deductible is much less money. For the difference in the cost of the insurance, I'd much rather have the 1000 deductible. I'd just put the difference in the cost of the premium into the bank and let it draw interest. Then, when/if I have a claim, I would use that money to make up the difference. In the end, it's all just a crap-shoot. Insurance companies are betting that you'll NOT cost them more than the premium that you pay, that's how they make money. On the other hand, we're ALL hoping that we never have to use the insurance but want them to take care of EVERYTHING if we have a problem.
Do less depreciation amount from a claim of disaster is yours to keep?
Now try in proper English. The deductible is not a payment. That is in essence what you pay before the insurance co pays. In other words, if the loss is $1000 and you have a deductible of $300 you will only get a claim check for $700
What is good about a high deductible?
You will have the lowest possible monthly premiums, but will have to satisfy the deductible before any insurance pays out. In some cases, the deductible can be a couple thousand dollars. One has to fully weigh the differences in the long run - it may be cheaper (and cause less headaches) to have a lower deductible insurance plan.
If you hit someone and his or her car is damaged but not yours do you still have to pay your deductible?
Although laws differ from state to state -- there are no-fault states, tort states, and hybrids -- this is the basic idea: Since we assume you are the at-fault driver, your liability insurance -- the property-damage portion -- will cover the cost of repairing the damage to his car. If there is a deductible, you will have to eat that. That's what deductibles are all about. But I'm not aware of deductibles associated with liability insurance. Usually deductibles are associated with collision insurance and comprehensive insurance. If you live in a no-fault state like New York, things may be slightly different. In New York, the other guy's insurance will pay to fix the damage to his car, less the deductible. But he won't have to eat that if you were the at-fault driver. YOUR insurance will pay his deductible.
Is hitting an object covered by auto insurance?
Yes, but is sometimes less than deductible, so no coverage.
What happens to an auto insurance premium when a deductible is lowered?
Depending on your driving record, there may be little change in your rate, however when you do utilize your insurer for a claim, you'll pay less out-of-pocket. If that is the only thing changing, decreasing the deductible will increase the premium. They have other expenses to service your policy, so the calculation isn't this simple, but if the insurance company's statistics predict you will submit 1 claim for $1000 damage every ten years, theoreticly they could give you free insurance if you selected a $1000 deductible since they would expect no payouts. If you lowered the deductible to $500, then they would expect to pay $500 sometime in the next ten years and would want a premium of $50 a year. If a deductible is lowered the premium usually goes up
Do you have to pay taxes on premiums for an indivdual life policy?
Life insurance premiums are not tax deductible, in general. However, group life insurance premiums are deductible for a business if the death benefit is $50,000 or less. Also, using key man insurance and executive bonus mechanisms, sometimes there can be some tax advantages. But, the premium is not deductible.
What is the average deductible through ahm health insurance?
"AHM health insurance doesn't normally release the cost of their customer's deductible since they offer different kinds. Some customers reported getting up to one hundred dollar deductible, others a little higher or less."
What is Amount payable by insurance company for insurance?
This is the amount paid by the insurance company to the doctor. It is the negotiated rate less the amount that you paid in the form of a copay, a coinsurance, or a deductible.
