How to Pay Auto Insurance Deductibles

If you have automobile insurance, chances are you have a deductible. A deductible is a predetermined fee you must pay when you file a claim if your auto is damaged. This is the insurance company's way of passing on some of the risk to you. You determine your deductible when you set up your insurance. A higher deductible lowers your monthly insurance premiums. When you file a claim there is a certain procedure you must follow when you are ready to pay your deductible. Often this step must be completed before the insurance company will pay its portion of the claim.

Instructions

1

Find out from the insurance company if your car is a total loss. A car is declared a total loss when the repair costs equal or exceed the actual value of the car. If your automobile is a total loss, the insurance company will subtract your deductible from the car's fair market value or actual cash value (before it was wrecked), and send you a check for the difference. You can use that money to purchase another car or use it as you see fit.

2

Call the insurance company or look at your policy to find out how much your deductible is. When you arranged your insurance policy, you decided what your deductible would be. You may have forgotten the amount over time, but the insurance company will have that information. You can also find it within the contents of the hard copy of your insurance policy.

3

Go to the body shop or auto repair place that's fixing your car and pay them. The sooner you pay the sooner you can receive your car after everything else is taken care, such as repair work and payment from the insurance company. If the total amount of the repair work is $4,000 and your deductible is $500, you have to pay the $500 and the insurance company will pay $3,500 to the auto body shop.

4

Get a receipt for your payment. Make sure the representative gives you a receipt. You will be able to provide proof of your payment to the insurance company if needed. The insurance company can also call the auto body repair shop to confirm your payment has been made. They will then issue a check for the balance.

5

Follow up with the auto body shop. Find out when your car will be finished and if the insurance payment has been made. You don't want your car to be ignored, if the auto body shop is over burdened, with other work that needs to be completed.