Most of us know that a deductible is the amount of repair costs we’re responsible for before our auto insurance coverage kicks in. We also believe that going for a higher deductible will lower the cost of our insurance.
Let’s talk through that choice for a minute. What you may be missing in that new math equation is that higher deductible means you will be on the hook for more out-of-pocket expenses. Are you ready to foot that bill every time you get behind the wheel of your vehicle?
Like most people, you’re probably saying “that won’t happen to me.” Here’s a reality check, however; in 2014, National Highway Traffic Safety Administration statistics showed more than 6 million crashes. And you, as an individual crash victim, will reportedly pay nearly 30 percent of the vehicle crash costs. The average nationwide cost is $897, though per-capita costs can range from $600 to $1,200.
Let’s be honest – not many of us have that kind of cash set aside to cover those out-of-pocket costs. If you make the choice to go with a higher deductible, then also make the conscious choice to build a savings account so you’re ready when the need arises.
While we are talking about deductibles, let us set the record straight. If you have an auto body repair shop representative tell you that he or she can waive your deductible, you need to know that is actually illegal. The deductible activates your policy and gets your insurance company clued in to pay the remainder of the repair cost. A reputable repair shop will do all it can to work with you and your insurance company to foster a good repair experience.
You may also hear or see the term “appearance allowance” during the repair process. In the spirit of educating our consumers, it is defined in the business world as “money given to the insured to keep part of a vehicle that is barely damaged.” The jury is out on whether or not doing so returns a customer’s vehicle to pre-collision condition.
Ask your estimator for more information and seek a certified technician’s opinion about the long-term effects of choosing not to repair the damage before choosing an appearance allowance.
Our certified technicians are ready to answer any questions you have about the auto collision repair process. We have convenient hours. Stop by and see us today.
Peninsula Auto Body, Inc.
1430 San Mateo Ave.
S. San Francisco, CA 94080
Hours: Mon-Fri 7:30 am-5:30 pm; Sat 8 am-12 pm