When you purchase Car insurance, there are a lot of decisions you will have to make. You’ll have to determine your carrier, coverages, and the amount of each coverage. However, most insurance plans will not fully cover all of the costs following a claim. You’ll also have to choose your deductible. Choosing a deductible is a serious financial decision, so it’s important that you fully understand how to get the best deductible rate for your needs.
A deductible is the amount you pay out of pocket when you file a claim. Deductibles are designed to help mitigate the costs of your premiums by sharing the expenses with your insurance company. Deductibles range in price. Some car insurance policies have no deductible, while others have a high deductible. You can also pay deductibles on certain coverages like property damage and pay different amounts on other coverages like bodily injury. Your deductible is negotiated with your insurance agent and the amount depends on your financial needs.
When determining what deductible to choose there are some things that you should consider:
The best way to think about choosing a deductible is to find a good balance. What can you afford upfront on your premiums, versus what can you afford to pay in the case of an accident. Some people choose to go with a high deductible to save money every month, betting they will not likely get into an accident. While other people choose a lower deductible and a higher monthly premium to feel more financially secure if there is an accident.
The best way to find the right deductible for your needs is to speak with an insurance agent. They will not only factor in your budget, they will assess your driving history and the risks of your local area, to help you refine your deductible strategy.
At Panorama our agents work with a variety of insurance carriers to help our customers find a plan with a deductible that meets their financial needs. If you have questions about deductibles, give us a call anytime. We’ll be happy to help!