For example, increasing your deductible from $250 to $500 could reduce the physical damage portion of your policy from 15% to 30% depending on your insurance carrier. Another type of coverage typically offered with a deductible is Personal Injury Protection or PIP. This coverage is also sometimes referred to as No Fault. “No Fault” insurance is a general term that is used to describe any auto insurance system that not only requires drivers to carry insurance for their own protection, and places limitations on their ability to sue other drivers for damages.

Any other drivers involved will be covered by their auto insurance policies. Not every state requires this type of coverage. No Fault is required if you live in:Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah or D.C. No Fault is usually offered with or without the option of a deductible. You can choose to purchase this coverage with a deductible if you want to absorb some of the risk as with other coverage such as physical damage.

No Fault portion of your policy. Your agent may recommend taking a deductible on your No Fault if you have health coverage elsewhere since you can only make one claim on any one injury. Some health insurance policies exclude automobile accident so it may be wise to check with your healthcare provider to make sure you are covered if you decide to go with a deductible. Common deductibles options on No Fault are $0, $250, $500, and $1000.

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