How To Select Car Insurance Deductibles

When it comes to saving money on your car insurance policies, one of the quickest ways to reduce your monthly premium is to raise your insurance deductible. But that can be a tricky decision and you must weight all the options before determining the best value for you and your family. Read our blog if you want to know how to select car insurance deductibles.  Also, visit our website and get quotes from top auto insurance companies.

Auto insurance deductible is the amount of money you are required to pay for vehicle repairs before your auto insurance company pays the remaining amount of the cost, up to the amount of your coverage. Deductibles are applied to comprehensive and collision coverage.

The first thing to consider when choosing a deductible is the amount of money you can pay if you are involved in an accident. Most auto insurance companies have deductible levels you can choose, with most ranging from $0 to $1,500. Saving money by raising a deductible assumes that you have the cash on hand to cover the deductible in such a situation. If you raise your auto deductible from $200 to $1,000, you’ll see a big drop in your bill, but if something goes wrong with your car, you’re going to need that $1,000, otherwise the insurance company will not cover you.

The value of your vehicle makes a big difference in what deductible makes sense. The more expensive your vehicle, often the more it costs to insure. A high deductible makes sense on a high value vehicle because the savings can be significant. On the other hand, if you have an old vehicle, typically older than10 years, you should check his value and see if it is worth more than 10 full coverage premiums.  If the answer is no, choose a small deductible.

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