In a Personal Auto Policy, deductibles are applied on what basis?

In a Personal Auto Policy, deductibles are typically applied on an "insured basis." This means that the deductible amount is applied to each individual's claim under the policy rather than being based on the number of incidents or claims. Essentially, when a policyholder files a claim, they must pay the deductible amount out-of-pocket before the insurer covers the rest of the eligible expenses associated with that claim.

This approach allows the deductible to be linked to the insured party rather than being influenced by the frequency of claims or incidents. For example, if a policyholder has multiple claims in a policy period, each claim would have the same deductible amount applied. This structure is designed to discourage frequent small claims while still providing coverage for larger, more significant losses, reflecting the underlying purpose of deductibles in insurance policies.