Everybody wants to save money on auto insurance. You can save money by choosing the right deductible amount. You should choose the policy deductibles that best suit your needs. You can get the right coverage and save money by choosing the right deductible.
To save money on their insurance premiums, many people will buy lower liability limits. This can put you at risk of a significant financial loss. You should also consider the protection that the liability section of your auto policy offers. This section covers injuries and damages for another person if you are responsible for an accident. Although no one thinks they’ll be at fault for an accident, it can happen to anyone at any time. Let’s say you are at fault for an accident that results in injuries to $200,000 to the other party. You have liability limits of $100,000 and a $100 collision-deductible. The injured party will receive $100,000, and you will have to pay the $100 deductible to repair your vehicle. If you had $1000 collision coverage with $250,000 liability coverage, the insurance company will pay $200,000 to the injured party and you will have to repair your vehicle for $1000. It would be cheaper to pay the $1000 deductible for your vehicle’s repair than to pay $100,000 to another person injured in an accident. You need adequate liability limits. Liability is the most important part of an auto policy. To save money on your premium, it’s better to increase your deductibles.
Different people may have different deductibles for collision and comprehensive coverage. Some people feel that the comprehensive deductible should not be as high. You can still save money on your insurance premiums by increasing your deductibles or keeping them the same. There are a few benefits to having equal or higher deductibles for collision and comprehensive coverage.
First, it’s easier to remember one than two deductibles. No matter what type of loss you are facing, you will always have your deductible amount when you file a claim. If you are able to afford a $500 deductible for collision damage, then you should be able afford a $500 deductible for comprehensive losses. Many people make the common comment that comprehensive is “glass coverage”, and that if the deductible exceeds $500, then this coverage won’t be of any benefit to them. Although comprehensive coverage covers glass, it is not all that provides coverage. Comprehensive coverage also covers hail damage, theft, vandalism and collisions with animals, among other losses. A second factor to consider is glass coverage. Most insurance companies will waive the deductible if your windshield is replaced or repaired. Higher deductibles that you are comfortable with will provide coverage for your vehicle, and lowers the premium.
You can choose the deductible that you feel comfortable with, but remember to consider the liability coverage in your auto policy. Inadequate liability limits can put you at risk. Remember that comprehensive coverage includes more than just windshield claims. Choosing higher deductibles will save you money and still give you the coverage you need. It is important to choose the right deductible for you when purchasing an auto policy.
