Jeffrey Wade
Liberty Mutual offers a range of car insurance coverage options, including comprehensive, collision, and liability coverage. When it comes to deductibles, the company provides flexibility, allowing customers to choose their deductible amount when purchasing insurance. While a higher deductible can lower the insurance premium, it's important to consider your budget and the potential out-of-pocket expenses in the event of a claim. Liberty Mutual also offers additional coverages, such as rental car reimbursement and 24-hour roadside assistance, to provide extra protection and peace of mind for drivers.
| Characteristics | Values |
|---|---|
| What is a car insurance deductible? | The amount of money you pay out of pocket for damages to your vehicle before your insurance kicks in. |
| When do you pay your deductible? | Before your coverage kicks in. In most cases, you'll need to pay upfront, even if the claim wasn't your fault. |
| How do you choose your deductible? | You pick your deductible when buying insurance. |
| Deductible amounts | Car insurance policies typically offer a choice of deductibles, such as $250, $500, $1,000, and $2,000. |
| How does a deductible work with a claim? | You pay your deductible first, and then your insurer covers the remaining cost of repairs or replacement. |
| Claim amount less than deductible | If the repair cost is less than your deductible, you'll need to pay for all repairs out of pocket. |
| Types of insurance claims with deductibles | Collision Coverage, Comprehensive Coverage, Uninsured Motorist Property Damage, and Personal Injury Protection. |
| Types of insurance claims without deductibles | Liability Coverage, Uninsured Motorist Bodily Injury, and Medical Payments. |
| Deductible for damage to someone else's car | If you damage someone else's property, you won't owe a deductible. Their damages are covered under your liability coverage. |
| Deductible if your car is damaged and you're not at fault | In most cases, you won't have to pay your deductible. The at-fault driver's liability insurance will cover the cost of repairs. |
| Factors to consider when choosing a deductible | Affordability, potential savings on car insurance, the value of your car, lender requirements, and state requirements. |
| Liberty Mutual Deductible Fund | Liberty Mutual auto customers may enroll in the Deductible Fund and receive up to $70 annually towards their deductible. |
What You'll Learn
Comprehensive and Collision Coverage
Comprehensive Coverage
Comprehensive coverage pays for damages to your vehicle from incidents other than a collision. This includes unexpected non-collision incidents like theft, animal damage, falling trees, and weather damage such as hail. Comprehensive coverage is sometimes referred to as "other than collision" coverage, and it helps cover the cost of damages to your vehicle when you're involved in an accident not caused by a collision. For example, if you hit a deer while driving, the damage would be covered under comprehensive coverage. Comprehensive coverage is typically required for a car loan or lease, and you don't select a limit for this coverage. The most it will pay is based on the actual cash value of your vehicle.
Collision Coverage
Collision coverage, on the other hand, pays for damage to your vehicle when it collides with another vehicle or object, such as a tree or guardrail. It covers your vehicle damage from accidents involving other cars or objects, including single-car rollovers. Collision coverage is also typically required for a car loan or lease, and you can choose your deductible, usually between $100 and $2,000.
The coverage limits for both comprehensive and collision coverage are determined by the value of your vehicle, as well as the deductible amounts you select. In the event that your vehicle is totalled, the maximum payout you can expect will be equal to the actual cash value of your vehicle, minus your deductible.
When choosing your comprehensive and collision deductibles, consider how much you're willing to pay out of pocket if your car is damaged. For example, if you have $500 in savings for vehicle repairs, you should choose a deductible of $500. The higher you set your deductibles, the lower your premium will be.
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Personal Injury Protection
PIP covers medical expenses and lost wages for the policyholder and their passengers if they are injured in an accident. In some states, it also covers non-medical benefits, such as household services, disability, and death benefits. PIP can also cover medical bills if you are hit by a car while walking or riding a bicycle.
The purpose of PIP is to ensure that individuals injured in auto accidents can have their medical expenses and lost earnings covered promptly, regardless of who is at fault. It also covers other reasonable and necessary expenses, such as household help and transportation to medical providers. In some states, PIP may include a deductible, with a range of deductible amounts to choose from.
PIP is different from bodily injury liability coverage, which provides coverage for medical expenses related to injuries caused by the policyholder in an accident. It is also different from liability insurance, which covers medical costs for third parties but not the policyholder if they are at fault.
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Uninsured Motorist Coverage
In addition to medical expenses, Uninsured Motorist Coverage can also help cover the cost of car repairs and rental cars. It can also provide compensation for pain and suffering and diminished value if your car is worth less after the accident. This coverage is designed to provide peace of mind and financial assistance when dealing with the challenges that arise from accidents involving uninsured or underinsured drivers.
When selecting Uninsured Motorist Coverage, you can usually choose the insurance limits that match your needs. For bodily injury protection, it is recommended to match the amount with your liability coverage limits. For property damage protection, you can select a limit that closely mirrors the value of your vehicle.
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Medical Payments Coverage
MedPay is supplemental to your regular health insurance, and it covers a range of expenses, including:
- Doctor, hospital, and emergency room visits
- Initial hospital stays
- Surgeries and X-rays
- Ambulance and EMT fees
- Health insurance deductibles and co-pays
- Prostheses or other medical mobility devices
- Ongoing medical services
It's important to note that MedPay has limits, typically ranging from $1,000 to $10,000, and it does not cover certain costs, such as childcare expenses during recovery or wage reimbursement if you're unable to work due to your injuries.
When deciding if you need MedPay, consider the following:
- Whether you have a high-deductible medical insurance plan—MedPay can help cover insurance deductibles.
- Your desire for financial peace of mind in the event of an accident.
- Your specific financial situation and other insurance coverage for medical expenses.
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Bodily Injury Liability Coverage
The amount of Bodily Injury Liability Coverage you need may depend on the requirements of your state. Most states have a minimum Bodily Injury Liability requirement to register your vehicle. However, it is important to note that the state-mandated minimum may not be sufficient, and you may want to consider purchasing additional coverage for extra protection. You can choose higher limits, purchase umbrella insurance, or enrol in the Liberty Mutual Deductible Fund to reduce your out-of-pocket expenses in the event of a claim.
When shopping for auto insurance, it is essential to consider your unique needs as a driver. Liberty Mutual offers standard coverages, including Bodily Injury Liability, as well as a range of add-on options to help you customize a policy that best suits your specific requirements. Understanding the basics of auto insurance and the various coverage options available can help you make informed decisions about the level of protection that is right for you.
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Frequently asked questions
A car insurance deductible is the amount of money you'll pay out of pocket for damages to your vehicle before your insurance kicks in.
Let's say you have a $1,500 covered claim. You'll pay your $500 deductible first, and then your insurer will cover the remaining $1,000 to repair or replace your vehicle.
If your car repair costs less than your deductible, you'll need to pay for all repairs out of pocket. Insurance only pays for damages that are above your deductible.
No. Collision Coverage, Comprehensive Coverage, Uninsured Motorist Property Damage, and Personal Injury Protection are some of the types of insurance that usually have deductibles.
When choosing a car insurance deductible, consider how much you can afford to pay out of pocket, how much you can save on your car insurance, the value of your car, and the requirements of your lender.
