Choosing the right auto insurance means having the right amount of coverage while comfortably affording your car insurance expenses. The costs related to auto insurance are twofold:
- car insurance premium payments
- your deductible (the amount you pay before your coverage kicks in after an accident)
Learn what a car insurance deductible is and how to choose the right deductible level.Determining how a car insurance deductible works
A car insurance deductible is the amount of money you are required to pay for vehicle repairs before your auto insurance company pays the rest of the repair bill (up to your coverage limit). A deductible is applied to comprehensive and collision coverage. Collision insurance covers vehicle repairs if your car is damaged in an accident with another vehicle or object. Comprehensive insurance covers vehicle repair bills for damage caused by an event other than a collision with another vehicle, for example, a natural disaster, vandalism, theft or an accident involving an animal.
Choosing your car insurance deductibleAuto insurance companies have predetermined deductible levels you can choose. Most car insurance deductible levels range from $250 to $1,500. The amount of your deductible directly influences the car insurance premium you are required to pay. For example, a higher deductible generally means that your premium will be lower. Conversely, if you choose a lower deductible, your premium will be higher since the insurance company will be paying more money to repair your car if it is damaged.
Saving for your car insurance deductibleRegardless of the car insurance deductible level you choose, you will need to have the money ready in order to pay for any vehicle damages following an accident. If you are unable to pay your deductible immediately for repairs to your own vehicle, you can put the repairs on hold until you are able to pay your deductible. Prepare for an accident by setting aside the deductible amount, whether it’s a few dollars every week or the entire amount in a separate account. You will feel more at ease knowing you can pay your car insurance deductible should anything happen.
The most important decision when choosing your car insurance deductible is making sure you can afford the amount required by your policy. To find more information, contact a reputable auto insurance company and speak to an agent about your options. You can also get an online insurance quote to compare rates and find the policy that works best for your budget.