When quoting auto insurance for clients, we frequently discuss
how to choose the right deductible. I
thought I’d take a few minutes to share this information here on our website too!
A deductible is the amount you pay out of pocket when you have a
claim. If you have a $500 collision
deductible and have an accident, then you would pay $500 towards repairing your
vehicle and insurance would cover the rest.
The deductible you choose directly relates to the amount of money
you spend on premiums each month. The
higher the deductible ($250, $500, $1000), the lower your monthly cost.
So how do you choose?
Cheaper price or lower out of pocket expense?
First, look at your emergency savings. Do you have enough cash available to cover a
higher deductible if you had to pay it?
If the answer is no, then you’re better off paying a little extra each
month.
Compare the cost savings.
When we run a quote, we can show you several different options. Ask your agent to run the premium based on
several different deductibles so you can see the actual dollar cost savings.
You can always change your mind.
If you’re short on cash now, but know you could afford more out of
pocket next year, you’re always able to change.
Keep your deductible in a comfortable range and you’ll always be well
protected!
Call us at 888-327-2663 and one of our protection specialist will be happy to assist you with a personalized quote!
