What happens if you can’t pay your car insurance deductible?

If you can not pay your car insurance deductible there is a possibility you can run into a little bit of an issue. Although there are alternate ways of approaching the situation and we will go over those ways within this article.

If you can’t pay the entire amount of your car insurance deductible at one time, there’s always the possibility you can work out some sort of installment plan with the mechanic doing the work on your vehicle. Another option to look into is some car insurance companies may have a deductible payment plan or deductible reduction plans.

The majority of us have thought about ways to reduce our car insurance deductible. If you’re in a position where you can not afford your auto insurance deductible, this may have crossed your mind. Some car insurance companies will not cover the cost of repairs on your damaged vehicle until the initial deductible is paid to your mechanic.

What exactly is an auto insurance deductible?

In simple terms an auto insurance deductible is the amount you to agree to pay towards the repairs to your vehicle if you are involved in an accident. Auto insurance deductibles and car insurance premiums are based off a teeter totter scale. For example the higher your deductible is, the lower your premium is, and the lower your deductible is, the higher your premium is.

Depending on your financial position, even the smallest deductible may be too much to pay. That’s why it’s important to explore your available options with an insurance broker. Our agents at Eugene C Yates Insurance Agency can help you navigate the process. If you need the lower premium and take the higher deductible you can still have flexibility to make this policy work. Some auto insurance companies have deductible payment plans.

For example if you feel as if you’re a very safe driver and do not have a history of claims, you may decide that the higher deductible is more fitting for your lifestyle. Which in the long run can save you a ton of money by going with the lower premium.

If you have a high history of claims or accidents, you may want to look into taking the lower deductible. By paying the higher premium you will be statistically inline to protect your habit patterns in a better way for your lifestyle.

On average American drivers that increase their deductible from $500 to $2,000, see an average savings of 15%.

Is it possible to avoid paying an auto insurance deductible?

More than likely, no. It’s incredibly difficult to get out of paying for your auto insurance deductible. But, we won’t blame you for trying. Negotiating your deductible with your auto insurance company is next to impossible.

If you’re feeling lucky and want to try your luck, you can speak to the mechanic working on your vehicle. You can ask the mechanic working on your car to bill the auto insurance company, minus the auto insurance deductible. From that point you can ask the mechanic to allow you to make payments until you satisfy your debt.

Although, very often when you decide to go this route, the mechanic requires that your vehicle stays in their garage until you have completely paid what you owe. It is legal for the mechanic to keep your vehicle until you have satisfied your debt.

If you feel as if lady luck is on your side and you’re feeling extremely lucky, you can take this long shot. You can request your auto mechanic to bill the auto insurance company, minus your auto insurance dedcutible. From there you can ask very politely that your auto mechanic waves the auto insurance deductible in total. Please keep in mind, it is very rare that this route will go your way.

If I ask my auto mechanic to wave my car insurance deductible, is that legal?

It is legal to ask your mechanic to wave your deductible. Although, you have to keep in mind this will interfere with profit of the mechanics shop. Another key point to keep in mind, is that it is illegal to request your mechanic overcharges the insurance company so that it will cover the costs of your auto insurance deductible.

Stating false information to your auto insurance company is considered fraud and will come with severe repercussions if you are guilty of such actions. These penalties can be jail, fines and other very harsh punishments. Committing fraud within an insurance contract can cause you to lose a lot more than just your automobile.

So what happens if there is no way I can pay my auto insurance deductible?

Most auto insurance companies require that you pay your auto insurance deductible. If this is the case your options will be extremely limited. You always have the option of taking out a personal loan. Although, most of the check in to cash type operations comes with very high interest rates, the money is usually given to you in a very short time frame and some do not require a credit check.

If you belong to a local credit union you may ask if they have a better alternative. This may be an option if you have more time on your hands and don’t mind the wait to save a little money.

Wrapping up, if your auto insurance company makes it a requirement that you pay your auto insurance deductible, you’re going to have to figure out a way to satisfy that debt. If you have additional questions regarding this, please feel free to reach out to one of our wonderful agents. They will be more than happy to help you with your auto insurance policy needs. [click her to call an agent now]