Deductibles

Deductibles and Coverage Limits

During every accident, the most important question you may want answered is, “who pays?” Understanding your deductible and coverage limits is crucial to determining that.

Using the Powerpoint and examples above, determine “who pays?” in these sample scenarios.

1. Norris has a deductible of $1,000. He damages his car in an accident and it will cost $3,300 to repair.

a.How much does Norris have to pay?

b. How much does his insurance pay?

2. Alicia has a deductible of $325 and a coverage limit of $50,000. She hits another driver and injures them severely. The case goes to trial and there is a verdict to compensate the injured person for $40,000.

a. How much does Alicia have to pay?

b. How much does her insurance pay?

3. Why would someone choose to pay a higher deductible?