Question about Insurance Deductible Notation

cool_aquarian

Hi,

I have a (newbie) question about Auto Insurance Comprehensive/Collision Deductible.
Have been shopping for Auto Insurance recently, and have noticed that Comprehensive/Collision Deductible are mentioned in two forms:

1. Dollar Amount like: $500 or $1000
   
2. Ratio like 1:500 or 1:1000
   

Have googl'ed around but was unable to find an answer.
Could someone tell if there is any difference between the two ?

Thank you..

Michaell

cool_aquarian said:

Hi,

I have a (newbie) question about Auto Insurance Comprehensive/Collision Deductible.
Have been shopping for Auto Insurance recently, and have noticed that Comprehensive/Collision Deductible are mentioned in two forms:

1. Dollar Amount like: $500 or $1000
   
2. Ratio like 1:500 or 1:1000
   

Have googl'ed around but was unable to find an answer.
Could someone tell if there is any difference between the two ?

Thank you..

I've never seen the second format (1:500) used after 35 years of being insured.

Let me see if I can round up some help for you ....

js06gv

I have worked on the claims side of the insurance industry for 21 years and have only seen dollar amounts such as in your first example. Sorry I couldn't be of more help.

cool_aquarian

Attaching screenshot(AutoInsurance_Limits.png) of the Insurance Quote I received with this post. I have highlighted the Deductibles in red color.
Hoping this helps in understanding my question.

stever

Geeze, almost looks like a typo and there should be commas for the deductibles (i.e., $1,500). Never seen that before either. Try asking the insurer for clarification.

Michaell

cool_aquarian said:

Attaching screenshot(AutoInsurance_Limits.png) of the Insurance Quote I received with this post. I have highlighted the Deductibles in red color.
Hoping this helps in understanding my question.

Is this for a specific insurance company? If so, which one? Have you gone to that company's website and searched for that notation to see if there is any sort of explanation?

houdini1

My guess would be that it just means $500. per claim. No idea why it is portrayed the way it is. Let us know what you find out.

cool_aquarian

Michaell said:

Is this for a specific insurance company? If so, which one? Have you gone to that company's website and searched for that notation to see if there is any sort of explanation?

It's from AAA Insurance.
There is nothing on website regarding this notation.
An agent provided this notation in the Quote only after I complete the online application and asked what all is covered.

Leon_1

The ratio of deductible to coverage limit is expressed as two numbers separated by a colon. For example, 1:500 means that for every $500 of coverage limit, you have a $1 deductible.

Brahimdiaz

This auto insurance thing can be confusing, especially for us newbies! Don't worry, the difference between dollar amounts and ratios for Comprehensive/Collision deductibles is actually pretty straightforward.

Here's the breakdown:

* **Dollar Amount:** This is the most common way deductibles are shown. It's a simple number – say, $500 or $1000. This is the amount you'll have to pay out of pocket before your insurance kicks in for repairs in case of theft, vandalism (comprehensive coverage) or a collision (collision coverage).

* **Ratio:** This is less common, but you might see it sometimes. It's written as something like 1:500 or 1:1000. The first number (1 in this case) is irrelevant – it just indicates a ratio. The important part is the second number (500 or 1000). That number represents the dollar amount you'll pay as your deductible, just like the standard dollar amount format.

So, whether it's shown as a dollar amount ($500) or a ratio (1:500), they both mean the same thing – the amount of money coming out of your pocket before your insurance company starts covering the repair costs.

Here's a quick tip: When comparing quotes, focus on the actual dollar amount of the deductible, not whether it's shown in dollars or a ratio. That way, you can easily compare the out-of-pocket expense across different insurance options.