Certain auto body repair facilities offer a service where the customer’s insurance deductible is absorbed by the shop. This means the vehicle owner is not required to pay the out-of-pocket expense typically associated with filing a claim. For instance, if an individual’s policy has a $500 deductible, and they use a shop offering this service, they would not pay the $500 when the repairs are completed.
The practice of absorbing deductibles aims to attract customers by lowering their immediate financial burden following a collision. This can be particularly appealing for individuals on a tight budget or those who find the deductible amount prohibitive. While beneficial on the surface, it is important to understand that insurance policies are contracts, and such practices may raise ethical or even legal concerns, depending on local regulations and the insurer’s specific terms. Historically, the prevalence of this practice has fluctuated based on market competition and insurer scrutiny.
