How MA Auto Insurance Deductibles Work

When you purchase auto insurance with collision coverage, you may have the option of selecting your deductible. It is important to understand how ma auto insurance deductibles work when making this decision. Deductibles not only affect your annual premium but also your out-of-pocket expenses to repair your vehicle.

What Are Auto Insurance Deductibles

The deductible is the amount that you must pay out of pocket before your insurance coverage applies. Common amounts are $500 and $1,000. For example, if the cost to repair your vehicle is $3,500 and you have a $500 deductible, you will pay $500 and your insurance will cover the remaining $3,000. If the damage to your vehicle is less than the deductible amount, then insurance coverage will not apply at all. So if you have $300 of damage and a $500 deductible, you must pay the entire $300 yourself since it is below the deductible amount.

How MA Auto Insurance Deductibles Work

Deductibles generally apply when the damage to your vehicle is your own fault. There is an option for a waiver of deductible. This means the deductible will not apply if  another driver is at fault and can be identified. This is most helpful when there is an uninsured, identifiable driver.

If you are in an accident caused by another identifiable driver who is insured, their Part Four (Damage to Someone Else’s Property) coverage will pay your automobile’s damages to the limit they purchased. You will not have to pay the deductible amount in this case.

Selecting a Deductible Amount

Now that you understand how MA auto insurance deductibles work, you can make a more informed decision about the amount to select. Your deductible will be set at $500 unless you select a different amount. You can always save on your premium by choosing a larger deductible (where one is offered). Although this leads to a lower annual premium, it results in a larger out-of-pocket expense for you when your vehicle needs repair. In determining the amount of deductible that is right for you, decide how much you can afford to pay out of your own pocket. In most cases, it is worthwhile to pay a slightly higher annual premium to receive a lower deductible.