How Deductibles Work
Insurance and your exposure to risk ought to be something you think about frequently, especially when there is any change in your business. Insurance buyers typically want two things: a competitive price and good service.
One method to reduce the cost of insurance is through deductibles. A deductible is the amount for which the insured is liable on each loss, injury, etc., before an insurance company will make payment. For example, a trucker backs into a dock causing $10,000 damage to his trailer. If the trucker has a $1,000 deductible, the total value of the loss (in this case $10,000) is reduced by the deductible. A trucking company may be able to maintain their premium by accepting more of their risk through higher deductibles.
Another option for truckers to consider is aggregate deductibles. When you have an accident and sustain damage to your tractor, trailer, and cargo, you may have as many as three deductibles apply. Out-of-pocket expenses may be minimized by using Great West’s Single Deductible Endorsement which combines the deductible for tractors, trailers, and cargo per accident. This endorsement is automatically included with each Great West truck policy.
Great West also has a diminishing deductible feature as part of its Choice Coverage package. Under this package, customers are rewarded for operating safely with a reduction in their deductible
for each year they are loss free. For each consecutive annual policy period that our customers do not have a paid comprehensive, specified perils, collision, or cargo loss under any policy with Great West, up to $1,000 of your deductible, will be reduced by the following percentages:
# of loss-free policies Deductible
with Choice Coverage Reduction
endorsement*
Less than 1 0%
1 25%
2 50%
3 75%
4 100%
*If any physical damage or cargo loss is paid, the deductible reduction will revert back to 0% if coverage is renewed for the remainder of the policy period.
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