Delaney Simchuk, Car Insurance Writer
Yes, you can make payments on your car insurance deductible since some repair shops offer payment plans. If you can’t afford to pay your deductible, other financing options include using a specialty credit card, taking out a loan, or saving up before filing your claim. However, insurance companies do not offer payment plans.
It is important to note that if your car insurance claim results in a payout to you, your deductible will just be subtracted from the payout. For instance, say your car was totaled in an accident, you filed a collision insurance claim, and the insurance adjuster determined the actual cash value (ACV) of your car to be $3,000. If your collision insurance deductible was $500, your insurer would simply subtract $500 from the ACV of your vehicle, and the settlement would be $2,500.
What to Do If You Can’t Pay Your Deductible in Full
- Discuss a payment plan with the mechanic. Generally, an insurance company will pay the repair shop for a covered claim, leaving only the deductible for the policyholder to pay directly to the shop. If you can’t afford the deductible, you might be able to arrange a payment plan. For example, repair shops may offer financing options such as a 6-to-12-month payment plan through a third-party bank or lender.
- Get a credit card for vehicle repairs. One of the most popular cards for this is the Synchrony Car Care™ Credit Card, which allows you to pay for unexpected vehicle repairs over time with special financing.
- Take out a personal loan. A personal loan is a borrowed sum of money that can be used for anything. You can apply for a personal loan from a bank, a credit union, or an online lender. Most personal loans require full payment in 12 to 60 equal monthly installments.
- Consider deferring your claim. If your car insurance claim is not urgent, you can wait to file your claim until you have saved up the money for the deductible. For instance, if your car’s roof was damaged by hail but your car still functions, you can delay making your car insurance claim until you can afford the deductible. In most states, you have at least two years after the event to file your claim.
To learn more, check out WalletHub’s guide to car insurance deductibles.
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