Dr. Dana Kerr, assistant professor of risk management and insurance, was featured in the recent CarInsuranceQuotes.com article “Car insurance claim: File it or skip it?” for his expertise on pseudodeductibles.
A pseudodeductible is the unstated dollar threshold that guides decisions on when someone files a claim and when he covers the loss on his own. “[Motorists] estimate what they think the size of the loss is versus their deductible,” Kerr noted. “It’s very personal. It depends on a lot of factors, including your appetite for risk.”
For a more detailed discussion of pseudodeductibles, read Dr. Kerr’s article “Exploring the Role of Pseudodeductibles in Auto Insurance Claims Reporting,” which was published in the Journal of Insurance Issues (Vol. 35, No. 1).