The deductible is an amount deducted from the compensation insurance. For example, you have a mess personnel costs 1000 $ and comprehensive insurance with a deductible of 200 $. You will be compensated as followed 1000 $ – 200 $ = 800 $.
What is the deductible?
The insurance deductible has several roles:
– Limit the number of minor accidents that would cost little more expensive concerning management fees than insured compensation (hand-scraped shock …)
– Empower the insured. If you were compensated at 100% against theft, limit, you may leave your car unlocked with the key in the ignition and a sign saying “steal me”, since you would be compensated in all cases. To avoid this and to ensure that people are careful with their car, the franchise has been put in place.
Remember, the most important part of the price you pay for car insurance is the risk premium (compensation related to your accident risk). If you do not have an accident during a certain time, you get a bonus. If the basic premium is 800 $ and you get a bonus of 80%, you pay only 800 $ * 80% = 640 $ per year.
Conversely, in case of accident, your percentage increase (malus). For example, if you have a penalty of 120%, you will pay 120% * 800th = 960 $ per year.
The bonus / malus allow some justice (bad drivers pay more than good drivers), encourage good behavior (for the bonus) and reduce the cost of management of small accidents. In fact, if you spoil a bumper, it is sometimes more interesting to compensate the victim hand to hand by insurance, which certainly reimburse the accident, but you will pay the deductible and a penalty which may cost you more than the accident itself.
What to do if you are denied by many insurance companies?
If you are denied by many insurance companies, given that you are obliged to ensure, know that you can appeal to the central rating office that will provide you insurance.
Pay less insurance
The cost of cheap no deposit car insurance depends on several factors, but primarily the risk premium and the margin of insurance. Depending on the commercial policy of insurance, and risk assessment, but also on the level of protection provided (some insurance companies are better than others) the insurance premium will be high in some other insurance.
To pay cheap no deposit car insurance; many policyholders go through brokers to find a more attractive offer. The broker will find the best offer for the insured to negotiate for the insured (including benefiting wholesale price if many clients)
The price comparison
You know the principle of price comparison to find cheap holidays. The concept is declined for car insurance. For example, with car insurance Comparison you can find cheaper insurance.
Originally posted 2013-05-22 16:34:42.