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How to deal with deductibles in bad economy?

by Joe

We just opened a body shop and I need to know if we would be able to help out customers with the way the economy is, we would be willing to waive the $500 deductible, but we want to make sure we're not breaking any laws. would you know if we would be able to do this and/or advertise it?


Hello Joe,

You would not be breaking any laws. There is an inherent right of “contract” in the US. It is your constitutional right to contract and perform your business as you please. You can waive it and advertise like that.

Be careful however, some people have very high deductibles (2,500), so you might want to limit it. Up to say $500 or whatever you feel is reasonable.

Also, remember that insurance companies have deductibles for a reason. To avoid having people make “silly claims.” If you take the deductible away, it is possible that people will show up with “lower damages than the deductible.” For example, I have a $500 deductible but my damages are $300, what then? Will you do the work for free?

Just make sure you cover all your basis before you advertise.

Good Luck in your new business.

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