What is no-deductible car insurance? This question is about Car Insurance

What is no-deductible car insurance?

Answer Question Report Abuse

This question is about Car Insurance

WalletHub, Financial Company

@WalletHub • 01/12/21 This answer was first published on 01/12/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

No-deductible car insurance is a policy that does not require the policyholder to pay anything out of pocket when they file a claim. Zero-deductible plans are more expensive than policies with a deductible, and they are usually only applicable to collision and comprehensive coverage.

In some states, insurers are required to waive deductibles or offer $0 deductible coverage for glass damage. For example, Florida, Kentucky and South Carolina do not allow insurance companies to charge a deductible for windshield repairs and replacement. Additionally, insurance companies in Arizona, Connecticut, Massachusetts, Minnesota and New York are required to offer drivers the option of choosing a $0 glass repair deductible that is separate from their general comprehensive deductible.

Most major insurance companies do not offer zero-deductible collision and comprehensive plans upfront, but some providers like Liberty Mutual have vanishing deductible programs that allow you to eliminate your deductible over time if you practice good driving habits. And some states, like New York and Pennsylvania, do not allow insurance companies to offer $0 collision or comprehensive deductibles at all.

Normally, car insurance deductibles can be anywhere from $100 to $2,500. And the higher your deductible is, the lower your premium is likely to be. With those guidelines in mind, you should choose whatever amount you could comfortably afford to pay in an unexpected situation.

To learn more, check out WalletHub’s guide to car insurance deductibles.

Find Cheap Car Insurance

Use the filters below to be matched with the right companies in your area.

Zip Code

Age

Credit Score

Currently Insured

Are you a homeowner or a renter?

Select

Homeowner

Renter

Have you been in an accident in the past 3 years?

Yes No

Do you have a DUI?

Yes No

Do you need SR-22?

Yes No

Answer Question

Collision Deductible Example

Say you are at fault in an accident that causes $10,000 in damage and you have a collision deductible of $1,000. You are responsible for covering your $1,000 collision deductible out-of-pocket in order for your insurance company to pay the remaining $9,000.

Collision Deductible Amounts

Collision deductibles typically range from $100 to $1,000, and you select your deductible amount when you purchase your policy. The higher your deductible, the cheaper your premium will be. Although it’s tempting to get a higher deductible in order to pay less upfront, you should only choose a deductible that you can afford to pay if your car is suddenly damaged in an accident.

show less

What is a good comprehensive deductible?

A good comprehensive deductible is an amount that the policyholder can afford to pay if their vehicle is suddenly damaged by something other than a car accident, such as vandalism or a natural disaster. Comprehensive insurance deductibles typically range from $100 to $1,000, but they can sometimes be as high as $2,500. You choose your … read full answer deductible when you purchase your policy, and the higher the deductible is, the lower your premium will be.

Comprehensive Deductible Example

As a reminder, a comprehensive deductible is the amount that you have to pay out-of-pocket when filing a comprehensive insurance claim. For example, if a hailstorm causes $5,000 in damage to your car and you have a $1,000 deductible, your insurance company will only pay $4,000 for the repairs.

How to Choose Your Comprehensive Deductible

Before you decide on a deductible, you should consider how likely you are to file a comprehensive claim. If you live in an area that is prone to natural disasters or has a high crime rate, for instance, it may be a good idea to get a low comprehensive deductible.

show less

Do you have to pay a car insurance deductible when not at fault?

You do not have to pay a car insurance deductible if you are not at fault in a car accident. The at-fault driver's liability insurance will usually cover your expenses after an accident, but you may want to use your own coverage, in which case you will likely have to pay a deductible.… read full answer

It can sometimes take the insurance adjuster a long time to determine fault, which can affect when you receive compensation from the at-fault driver. In that case, you can file a claim with your collision insurance, personal injury protection, or MedPay coverage in order to pay for the cost of repairs or medical bills in the short term.

You will have to pay a deductible for collision coverage and personal injury protection, but your insurance company will eventually recoup your costs through subrogation with the at-fault driver’s insurer. However, if you are partially at-fault, then your expenses may be reimbursed in proportion to your fault or not reimbursed at all, depending on your state.

If the other driver is uninsured or doesn’t have enough coverage to pay for your expenses, you can file a claim with your uninsured/underinsured motorist insurance, if you have it. Uninsured/underinsured bodily injury coverage pays for your medical expenses and does not require a deductible. If your car is damaged, your uninsured/underinsured motorist property damage coverage will pay for repairs, and in some states you will have to pay a deductible.

To learn more, check out WalletHub’s guide to car insurance deductibles.

show less

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.