Understanding the Ins and Outs of a $100 Deductible

What does 100 dollar deductible mean

What does 100 greenback deductible imply?

Insurance coverage insurance policies embody deductibles as a necessary side of the contract. A deductible is the quantity that policyholders should pay earlier than the insurance coverage firm steps in and pays the remainder of the expense. Most insurance coverage insurance policies, together with automotive insurance coverage, include deductibles.

A deductible may also help decrease your insurance coverage prices by shifting among the monetary burden to you. By paying the predetermined deductible, you share a portion of the cash wanted to repair the damages with the insurance coverage firm, they usually cowl the remainder of the repairs.

A $100 deductible is a sort of deductible generally used, particularly in automotive insurance coverage or owners' insurance coverage insurance policies. In sensible phrases, it implies that the policyholder should pay $100 out of their pocket earlier than the insurance coverage coverage begins protecting the remaining bills.

Varieties of Deductibles

Deductibles fall into two broad classes: fastened and proportion. A set deductible, just like the $100 deductible, is a set greenback quantity that the policyholder is liable for earlier than protection begins.

A proportion deductible is calculated as a proportion of the whole quantity of the coated loss. As an illustration, you probably have a $10,000 dwelling insurance coverage coverage with a 1% deductible, you can be required to pay the primary $100 of the loss or harm.

How Does a $100 Deductible Work?

A $100 deductible, as beforehand talked about, implies that the policyholder should pay the primary $100 of the loss or harm to their vehicles or houses.

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For instance, if you're concerned in a automotive accident, and you've got a $100 deductible in your automotive insurance coverage coverage, you'll pay the primary $100 of the whole quantity of damages incurred. Within the case that the whole price of repairing your automotive is $2000, you'll pay $100, and the insurance coverage firm will cowl the remaining $1900.

Equally, you probably have a owners' insurance coverage coverage and a hail storm damages your roof, you possibly can file a declare to have the price of repairing it coated. If the price of repairing the roof is $4,000, you'll pay the primary $100, and your insurer pays the remaining $3,900.

Execs and Cons of $100 Deductible

The first benefit of getting a $100 deductible is that it sometimes comes with decrease month-to-month premiums. It is because you might be liable for protecting damages or losses as much as the deductible quantity.

Alternatively, a $100 deductible could be disadvantageous as a result of it may lead to out-of-pocket bills for the policyholder.

Moreover, when an accident happens that entails a $100 deductible, the policyholder could not file a declare for under small quantities of damages or repairs. For instance, if the price of the repairs is $99, the policyholder should pay for every part. On this state of affairs, even when the harm is just a small dent, the policyholder could want to pay out-of-pocket to forestall the coverage's premium from going up attributable to a declare.


The deductible is a major side of any insurance coverage coverage, and understanding what it means is important. A $100 deductible is widespread in automotive and owners' insurance coverage insurance policies, and it implies that the policyholder should pay the primary $100 of the whole damages earlier than the insurance coverage firm covers the remaining quantity.

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Take into account what sort of insurance coverage coverage you've and if a $100 deductible is sensible for you. Select the protection that matches your monetary scenario and contemplate consulting with an insurance coverage agent to reply questions or considerations you could have.

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