In a Personal Auto Policy, deductibles are applied on a/an ________ basis.

In a Personal Auto Policy, deductibles are applied on a per claim basis, meaning that for each individual claim made under the policy, the deductible amount must be paid by the insured before the insurance coverage kicks in to cover the rest of the loss or damage. This structure means that if multiple claims are filed within a policy term, the insured will need to meet the deductible for each separate claim, which can affect the overall out-of-pocket expenses over time.

This approach is common in auto insurance to ensure that the insured shares a portion of the risk for each incident, which can help discourage minor claims and promote responsible driving behavior. By having a per claim deductible, policyholders are encouraged to consider the cost of smaller damages before filing a claim. Other options such as aggregate, per insured, or per vehicle do not accurately represent how deductibles function within the framework of a Personal Auto Policy.