At Bear River Mutual, deductibles only apply to comprehensive and collision coverage in our automobile insurance policies. These coverages protect you financially in specific situations, and here's a simple way to understand them:
Comprehensive coverage: This type of coverage provides financial protection against events that are mostly beyond your control, such as a stolen vehicle or a tree falling on your car.
Collision coverage: This coverage offers financial protection for incidents that typically result from driver error, even if it's the fault of the other driver.
In both cases, the deductible is the amount that you, as the insured, would need to pay if you experience a covered loss that requires a deductible. We would then cover the remaining expenses up to the applicable limit(s) stated in your policy. For example, if the covered expenses amount to $2,500 and you have a $1,000 deductible, you would be responsible for paying $1,000, and we would cover the remaining $1,500.
Collision deductibles are one reason why vehicle owners with "full coverage" often choose to work with the other driver's insurance company if the other driver is at fault in an accident. While your policy may cover the damage, you would still need to pay the deductible if you file a claim against your policy. If we agree that the other driver is responsible, we would work with their insurance or the driver directly (if they don't have insurance) to try to recover your deductible. However, it's important to note that there is no guarantee of success, and the recovery process duration is difficult to predict.
Understanding deductibles is crucial in managing your automobile insurance coverage. If you have any further questions or need clarification, please don't hesitate to reach out to us. We are here to assist you in navigating your policy and ensuring that you have a clear understanding of how deductibles work.