(Voiceover): I'm George Denger, and I'm an Allstate agency owner with offices in Easton and Stockertown, Pennsylvania. I get a lot of questions from customers about what a deductible is and how it works.
A deductible is the amount you pay out of pocket when your insurance pays a claim. You select your deductible when you purchase insurance.
Here's how deductibles work. Say the deductible on your auto comprehensive coverage is $500. A big tree branch falls on your car, and the damage costs $2,000 to fix. You would then pay $500 toward the repairs, and your insurance would pay the other $1,500.
The right deductible can be different for everybody. I live in rural Pennsylvania, where there are a lot of deer. Most people in my area know someone who has hit a deer.
Sometimes when a customer hits a deer, they say, "I didn't do anything wrong, the deer jumped out in front of me! Why should I have to pay a deductible?" But a deductible isn't based on fault. It's based on what you what you agree to pay when you purchase your insurance policy.
Because of the risk of deer in our area, I suggest that car insurance customers think about a lower deductible on their comprehensive coverage. Even if it means paying a bit extra in premiums.
Understanding how deductibles work can help you tailor your insurance coverage to suit your needs.
