Understanding waiver of deductible coverage

Chances are you have multiple things in your life that need insurance protection, such as a home and two cars. For each policy you have, you also probably have a deductible, an amount you pay out-of-pocket when you make a claim. On its own, a deductible is made to be a manageable expense.

But what happens if one claim affects more than one policy?

"Waive" goodbye to multiple deductibles

For instance, let's say a tree falls and damages both your home and one of your cars. Or, a hail storm does significant damage to multiple vehicles? Since you'd be making multiple claims, you would have to pay the deductible for each claim. That can add up fast.

This is where the waiver of deductible coverage comes in. If you have insurance that includes this coverage advantage, you pay only the highest deductible involved in your claim. Here's an example for illustration purposes:

A tree falls on your home and your two cars, causing damage to all three

Home deductible – $1,000

Car 1 deductible – $500

Car 2 deductible –$500

Without wavier of deductible, you pay: $2,000
With waiver of deductible, you only pay: $1,000

Waiver of deductible coverage just saved you 50%.

This coverage, offered by companies like The Hanover, could save you a lot of money, especially at a time when you may need the savings the most. 

Multiple policies? One company.

If you have your home and your auto insurance policies with different carriers, a waiver of deductible policy is a good reason to consider combining your coverage with one company. When you're ready to shop, contact your independent insurance agent for guidance on the best combination of coverage, value and price.

In the meantime, watch our "Coverage Made Clear" video to learn more about waiver of deductible coverage.

LC 2018-014