One of the things you will have to decide when you purchase auto insurance is what amounts you would like to have as your deductibles. A deductible refers to the amount of money you are required to pay when you file a claim before the insurance company will pay the claim. You can choose any amount you would like as your deductible, but most people choose somewhere around $250 to $2,000. Here are some tips to help you choose the right amount.
Are you looking for a cheap insurance policy?
If saving money is your main objective, you will want to choose the highest deductible you can afford to have. As deductibles increase, rates for insurance decrease. This means that if you choose a $2,000 deductible, you will pay less for your insurance than you would if you chose a $250 deductible. If you simply want to save money on your expenses, choose a high deductible.
How much money can you come up with if you get in a wreck?
If you end up in a car accident that was your own fault, you will be required to pay your deductible if your car needs repairs. When this happens, how much money will you be able to come up with? If coming up with $2,000 will not be a problem, then having a $2,000 deductible might be a good option. If you would have trouble coming up with $500, you may want to stick with a deductible that is $250. While you may never encounter an accident that will require you to pay your deductible, there is always a chance you will have to, and that is why it is important to have a deductible that you can afford.
How likely are you to be in an accident?
One other thing you could consider is the likelihood that you will ever be in an accident. If you work just five minutes from home and do not drive a lot of other places, you may have a very low risk that you will be in an accident. In this case, having a higher deductible is probably a good option. If you travel a lot, though, it might be worthwhile to choose a lower deductible, simply because you might have a higher risk of being in an accident.
You are free to choose your own deductible, and it's important to understand the effects a deductible can have on your budget. If you would like to get a quote for auto insurance, contact an insurance agency today, like Nelson Insurance Agency.
Do you remember the last time you experienced an accident or an injury? Life can surprise you sometimes, which is why it is always smart to have a few life insurance policies in place. I used to think about everything that I had and everything that I could lose, and it occurred to me that I couldn't risk taking any chances. I wanted to begin this blog to share my perspective with other people, so that you don't have to worry about finding the right insurance company. Read more here to figure out what you need to do to choose a better plan.