A Glass Buyback Deductible Can Save You Money
If your vehicle’s windshield is damaged, then you would file a claim under your comprehensive auto insurance coverage. However, the cost of repairs may be only slightly over your auto insurance deductible. A glass buyback deductible can help you save money by letting you pay a smaller deductible for this type of claim.
What Is a Buyback Deductible?
A buyback deductible is a provision that allows a policyholder to pay a smaller deductible when they file a claim that surpasses their original deductible. For example, say that you have a $500 deductible and you file a claim for $800 of damage. With a buyback deductible, you would be able to pay a smaller deductible and your auto insurance company would cover the rest.
Why Do Auto Insurance Companies Use Buyback Deductibles?
To understand why auto insurance companies use buyback deductibles, you have to understand why deductibles are used in the first place.
Deductibles are used as a measure to control the number of claims filed. Say that you have 2,000 people in your neighborhood and everyone gets into a car accident. If no one had to pay a deductible, then every single person would file a claim, regardless of how minor or extensive the damage done to their vehicle. However, if everyone had a $1,000 deductible, only those whose vehicle sustained more than $1,000 of damage would file a claim.
The higher your deductible, the less likely you are to file a claim. This makes you less risky to insure, which is why high deductibles and low premiums tend to go hand-in-hand.
There’s a downside, though. If you have a $1,000 deductible and you’re in an accident that results in $1,200 of damage, you’ll likely file an auto insurance claim. Your insurer will only cover $200 of damage, rendering your coverage almost useless. If you add a buyback deductible provision to your auto insurance policy, you may only pay a $300 deductible, and your insurer will cover the rest.
The benefits are still there for your auto insurance company; your $1,000 deductible prevents you from filing a claim for minor damage. You also benefit, however; as long as the damage done to your vehicle surpasses the amount of your deductible, you can file a claim and save money.
Adding a Glass Buyback Deductible
Generally speaking, glass coverage is a part of your comprehensive auto insurance coverage. If your vehicle was vandalized and your windshield was shattered, you would file a claim under your comprehensive coverage and pay your deductible. If you had a $750 deductible and the cost of replacing your windshield was $800, then you would be paying for the bulk of the replacement cost. A glass buyback deductible is optional coverage that can be added to some auto insurance policies. This coverage reduces the deductible specifically for glass damage to your vehicle’s windshield.
To find out if a glass buyback deductible is right for you, talk to a Nevada Insurance enrollment auto insurance agent today.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.