In Phillipsburg, NJ and throughout the state, deductibles are the policy owner’s responsibility to pay out-of-pocket costs when comp, collision, or personal injury protection (PIP) becomes a factor. Auto insurance covers the most significant part of the bill with these policies, whereas there is no out-of-pocket cost when liability alone is a factor in an accident.
The monthly premium covers the insurance on the damages, but at-fault drivers must pay a minimum which varies between different insurance companies. No one is at fault when the comp is a factor, but the policyholder still must come up with the minimum cost per the policy. One thing to note is that the lower the deductible, the higher the premium.
Factors in Comp and Collision Deductibles
Vehicles that are financed are required to have comp and collision. The minimum deductible depends on the requirements of the finance company or bank at the time of purchase. Some companies have a minimum deductible of $250 to as high as $5K.
When an accident happens, and the driver is at fault, the insurance companies will look into the repairs or total loss of the vehicle. They will calculate the cost of repairs or the car’s book value and subtract the deductible from the price. The insurance company will then cut a check for the final amount; the policy owner is responsible for the rest.
Deductibles from PIP
PIP deductibles can start at $250 and go as high as $250,000. This covers all personal injuries in accidents as the deductible works the same for the medical bills as for the comp and collision.
Contact TAS Insurance Agency Today
Feel free to inquire with us at TAS Insurance Agency concerning auto insurance for Phillipsburg, NJ and the surrounding locations. Give us a call for more information.