1-833-PROTECT ☰ ˟
Logo
Get A Quote
  • Products
    • Automobile
    • Homeowners
    • Business Owners’ Policy (BOP)
    • Commercial Auto Insurance
    • Pet Insurance
    • Business & Commercial
    • Commercial Umbrella Insurance
    • Small Business
    • Life
    • Recreational Vehicle
    • General Liability
    • Builders Risk
    • Umbrella Coverage
    • Workers Compensation
    • Vacant Land
  • Resources
    • Refer a Friend
    • Blog
    • Insurance Glossary
    • Privacy Policy
    • Job Postings
  • About
    • About Us
    • Contact Us
    • Our Locations
    • Areas We ServeImage of right arrow
      • Bexley, OH
      • Columbus, OH
  • Get a Quote
    • Auto Insurance
    • Homeowners Insurance
    • Pet Insurance
    • Commercial Auto Insurance
    • Business Owners (BOP)
    • Life Insurance 
  • 1-833-PROTECT
Home > Blog > Advising Clients On Commercial Auto Insurance Deductibles
THURSDAY, OCTOBER 28, 2021

Advising Clients On Commercial Auto Insurance Deductibles

Comm Auto They might look to you to make recommendations on the deductible. How can you do so effectively? 

Multiple sections of commercial auto policies might come with deductibles. That will ultimately impact a customer’s financial responsibility for their insurance claims. Don’t hesitate to advise them on the pros and cons of selecting a certain deductible value. 

Deductibles In Brief 

A deductible is a client’s financial responsibility for an insurance claim. So, if someone has a $500 deductible, they must pay this amount before the policy covers the rest of a claim. If a claim cost falls below the value of the deductible, then insurance likely won’t pay. 

Here are a few scenarios involving a $500 deductible. 

  • A car sustains $2,000 in damage. The client will pay the first $500 (the deductible) for repairs. The insurer will then pay the remaining $1,500, as $2,000 - $500 = $1,500. 

  • A car sustains damage valued at $450. The policy likely won’t pay because this is lower than the deductible cost. Keep in mind, however, that some damage does not come with a deductible. 

  • Even if a vehicle sustains $501 dollars in damage, the client might still have to pay the $500 deductible. Insurance might still pay the remaining $1. However, in cases like these, claim often prove arbitrary. 

The Importance Of Deductibles To Clients 

Deductibles can impact a client’s finances. Clients must keep them in mind when buying coverage. 

  • Deductibles will signal to a client how much they must pay out in case of a policy claim. That could impact a business’s bottom line.  

  • Deductibles can also impact a client’s overall policy costs. Most insurers drop premiums for clients who carry higher deductibles. 

How Can You Help Set Deductibles 

Ultimately, you can provide feedback to your clients on their deductible options. While a higher deductible might cut premiums, it could put clients in a bind down the road. For example, if the client risks losing significant funds in a covered incident by paying a high deductible, then the overall benefit of the higher number might not prove fruitful. Make sure the client understands this factor. Recommend they carefully consider how much they want to pay for a claim. 

Most policies allow customers to choose from several deductible options. Therefore, discuss with your clients the different cost benefits of each option. 

Posted 10:53 AM

Tags: commercial auto
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020

  • insurance(33)
  • coverage(26)
  • policy(21)
  • business(17)
  • commercial(14)
  • owners(7)
  • homeowners(6)
  • bop(6)
  • auto(4)
  • liability(3)
  • workers compensation(3)
  • general(3)
  • life(3)
  • vehicle(3)
  • accident(3)
  • life insurance(3)
  • recreational(3)
  • whole(3)
  • terms(3)
  • pet(3)
  • commercial auto(3)
  • umbrella(3)
  • group health insurance(3)
  • employee(3)
  • car(3)
  • rv(3)
  • benefits(3)
  • workers(3)
  • retirement(3)
  • deductible(3)
  • compensation(3)
  • auto insurance(2)
  • group(2)
  • personal(2)
  • business owners policy(2)
  • health(2)
  • business insurance(2)
  • home(2)
  • vacant(1)
  • health insurance(1)
  • land(1)
  • general liability insurance(1)
  • vehicles(1)
  • property(1)
  • claims(1)
  • umbrella insurance(1)
  • general liability(1)
  • home insurnace(1)
  • small(1)
  • preparedness(1)

View Mobile Version
Carrier Carrier Carrier Carrier Carrier Carrier
Contact us Today!
Resources Request A Quote Payment/Claim About Us Carriers  Our Locations
Follow Us facebook twitter Instagram></a>
<a href=google
Dublin Office 545 Metro Place South, Suite 250 
Dublin, OH 43017

Ph: 1-833-PROTECT
info@ProtectALLinsurance.com
 
Cleveland Office 6105 Parkland Blvd, Suite 160
Mayfield Heights, OH 44124

Ph: 1-833-PROTECT
info@ProtectALLinsurance.com

  
Logo

Affiliated with: Logo
© Copyright. All rights reserved. Powered by Insurance Website Builder | Affiliated with AIS, LLC.

Licensed in OH, CA, IN, MI, NY, WV

Chat Bubble