Home and auto insurance deductibles in Michigan have become more complex in light of new insurance laws and recent market changes. How can you be sure you’re choosing the right deductible for you? That all depends on how much risk you’re willing to accept before the insurance company pays out a claim. Your deductible is the amount of money you will have to pay out of pocket before your insurance company will pay out your claim. But the larger your deductible, the lower your premium will be.
Mandated Property Deductibles
Some home insurance carriers are mandating $2,500 on property deductibles. That means that when making a property claim, nothing will be covered until you pay $2,500. Without $2,500 in emergency savings, this type of policy won’t do you any good. It is essential to make sure you can afford the deductible on your insurance plan, or you won’t be covered! If you’re unsure, make sure to speak with an independent insurance agent who is committed to keeping you covered.
Some home insurance carriers are also mandating 1% wind and hail deductibles. This means that you must have 1% of your total coverage to pay as a deductible before the insurance company will pay for the rest of your claim. Wind and hail damage typically applies to roof claims, which are not cheap. Make sure you speak with a trusted insurance advisor to ensure you know what to expect if a claim must be made.
Why are Property Deductible Mandates so High?
From inflation and supply chain issues to the rise in severe weather, the insurance market has been hit hard in the past few years. Insurance companies did not raise insurance rates soon enough amidst the Covid-19 pandemic and went into debt. To compensate, they now must raise rates even higher just to get out of debt. To make matters worse, inflation and severe weather continue to be an issue.
Three Types of Auto Insurance Deductibles in Michigan
- Limited: Least amount of coverage possible. You are not covered if the accident is your fault. Your insurance company will not respond.
- Standard: You are covered, and your insurance company will respond regardless of fault. But, regardless of fault you will still have to pay your deductible.
- Broad: Your deductible will be waived if you are not at fault in the accident.
TDA Insurance & Financial Agency
TDA Insurance & Financial is an independent insurance agency located in the heart of Walled Lake, Michigan. As a family-owned business, we take pride in protecting our clients like family. Since we are a locally owned business, our agents are very knowledgeable of the details surrounding these new insurance laws. Our agents are always happy to help with any questions or concerns you may have regarding home and auto insurance deductibles in Michigan. Further, as part of an independent insurance agency, we compare your rates across a variety of different companies to ensure you’re getting the best coverage at the best price.
Visit our website or contact a TDA agent for a FREE quote today!
Contact a TDA agent today with any question or concerns you may have!