How Car Insurance Deductibles
One of the things that a car owner must look
for when getting car insurance is the deductible. Your car insurance agent may ask how high you would like
your deductible to be and might give you several options. To understand how they work you must also
understand what a deductible is first.
Deductible is the amount you are required to pay on any insurance
claim you file. This means that you may have to pay the expenses out of your own money first before the car
insurance company pays anything. It doesn’t really matter if you have a minimum insurance coverage with basic
liability and uninsured motorist coverage or you have comprehensive and collision coverage. Deductible is a
standard part of every car insurance policy. The only difference is the amount of deductible that you agreed
to pay your car insurance company.
Choosing your car insurance deductible is also as important as
getting the car insurance. If you choose a high deductible, you save a lot of money on your premiums yearly.
This means that if you are willing to pay a high amount of your own pocket then you will be required a lower
premium rates to pay for the insurance. It is best to choose a deductible that you can afford and can get
quickly if you need it. Do not choose a high deductible that you cannot afford with your current financial
status. If your insurance claims is $3,000 and you have a deductible of about $500, then you must be willing
to pay that amount in case an accident occurs. It will be your car insurance company’s responsibility to pay
the remainder amount. Just keep in mind that some insurance companies will not pay the whole amount until you
have paid your deductible. To be sure that you can pay your deductible anytime, it is encouraged that you
keep an account for it where it can gather some interest until you need to use it. By doing this, you will
have a peace of mind.
It is a fact that the prices in each car insurance company vary.
It is always a good idea to get different quotes before you purchase a policy. This will also be a good
ground to choose you’re the amount of deductible you want. Also, the type of car you drive can influence your
deductible rates. How much you bought or paid for your car will also be a factor. How safe your car is also
another factor that will help you get a lower premium. Keep in mind that your deductible is only one way to
reduce your car insurance costs so make sure that you have compared quotes before you choose your car