Insure Your Future

Insure Your Future

Tips For Choosing An Auto Insurance Deductible

by Sue Palmer

One key decision you must make when buying collision auto insurance is choosing the amount for your deductible. The deductible is an essential part of an insurance policy, and you should understand what it is and how it works before you choose an amount. Here is an explanation of what an insurance deductible is, how it works, and how to choose the right amount.

What It Is

The first thing you must understand before going any further is what a deductible is with insurance. If you ever get in a situation where you must file a claim on your insurance policy to receive compensation for damages, you will have to pay a deductible. The amount you pay for this will depend on the amount listed on your policy. Once you pay this amount of money, the insurance pays the rest of the bill if your policy covers the damages for the claim. If you never file a claim, you will never have to pay the deductible.

How They Work

When you get into a collision of any kind and file a claim, either your insurance company will have to pay the claim, or the other person's insurance company will have the responsibility of paying it.

If you cause the accident and need car repairs, you must pay the deductible if you want the insurance company to cover the remaining repair bills. If you do not cause the accident but need repairs, you will not have to pay the deductible to get repairs. Instead, the other party's insurance plan would cover the full cost of the damages you encountered.

If you only have liability coverage on your plan, you will never have to pay a deductible either. With liability-only coverage, you would not have the option of filing a claim if you encountered damages to your car from an accident you caused. Instead, you would have to pay the repair bill from your pocket.

How to Choose Yours

The final thing to know is that you have the choice for your deductible. One thing you might want to do when selecting your amount is to ask for quotes with different amounts. If you compare a quote for insurance coverage with a $500 deductible to one with a $1,000 deductible, you will see a difference in premium costs. Using this method offers an excellent way to choose an amount you can afford. You can talk to an auto insurance agent if you have additional questions.

For more information, reach out to car insurance providers in your area.


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Insure Your Future

Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.