Waiver Of Collision Deductible
Attempts to make health insurance mandatory has led to a lot of criticism, but nobody criticizes the fact that car insurance is mandatory. A small accident on road with nominal damage to car, self, and family members can leave you poorer by a few thousand dollars. The cost of repair, replacements, hospitalization, and medicines together is enough to cause bankruptcy. This is why every state requires minimum insurance.
However, there are still people who skip insurance, hoping that they can manage without it. Waiver of collision deductible is available as extra protection for those who have the misfortune of being involved in a collision with an uninsured driver.
The general rule of car insurance is that the party at fault foots the bill, personally or through his or her insurance policy. Filing a lawsuit against an uninsured motorist is possible, but not practical. It is easier to file a claim on one’s own car insurance policy to get money to repair the vehicle if the option of securing compensation from the uninsured motorist is not feasible.
Such an approach hits a roadblock when the question of payment of deductible comes up. No auto insurance company will process a claim without payment of a deductible in advance. The insured will have no option but to pay the same when he or she is at fault and is filing a claim. However, being compelled to pay the deductible just because the other party at fault was careless enough to drive without insurance is patently unfair.
This problem is overcome with help of an option called waiver of collision deductible. This waiver results in addition of a specific amount to your insurance premium to be used in event of collision with an uninsured motorist. The same is used to pay off the deductible when a claim is being filed under the special circumstances mentioned above.
A recent study by Insurance Research Council in January 2009 indicates that one in six drivers may be on the road without any car insurance protection whatsoever. To hope that one will collide with an insured motorist only is being optimistic. Recession, unemployment, and financial issues often cause people to skip auto insurance. Choosing the waiver of collision deductible will ensure you don’t end up unable to file claim on the policy under any circumstance.
Another benefit of opting for the waiver of collision deductible is that the total increase in premium works out to be much lower than the committed deductible. Slightly increasing the general deductible payable on the policy may negate the rise in premium. This will help drivers enjoy complete protection without any rise in the cash outflow toward premium payments.