We understand that selecting the best deductible for your auto insurance can be challenging. That’s why we’re here to help. Choosing the right deductible is one of the most crucial car insurance decisions.
The Role of a Deductible
The deductible is the sum of money you pay out of pocket towards a claim before an insurance company starts to pay for repairs to your damaged vehicle. Moreover, you will pay a deductible every time you file a claim. For example, if your repair cost is $5000 and your deductible is $500, you must pay the $500 first. Subsequently, your insurance company will pay the remaining $4500 of the repair bill.
The higher the deductible, the greater your financial responsibility is when filing an auto insurance claim. However, higher deductibles result in you paying a lower premium on your policy.
Conversely, choosing a lower deductible on your auto insurance policy results in lower out-of-pocket costs when there is a claim after an accident. However, the premium for that coverage is higher.
On auto insurance policies, deductibles are typically only attached to comprehensive, collision, uninsured/underinsured motorist, and personal injury protection coverage.
Some drivers avoid filing claims to dodge the deductible, but this results in them bearing all the repair costs.
Selecting a Deductible: Things to Consider
- Would you prefer a higher or lower deductible?
- What is the premium cost for each deductible?
- How likely are you to file a claim?
- Consider the value of your vehicle.
- How much money have you saved up in case you need to file a claim?
- Are you a risk-taker? The riskier you are, the higher the deductible.
Most people choose a $500 deductible for their car insurance coverage. However, deductibles can begin as low as $250 up to $2500 or more. When choosing a deductible, ensure you can afford to pay the deductible if you need to file a claim.
We Are Your Lifeline
If you’re in Panama City Beach, FL, or the surrounding areas, contact us today at Hall Insurance. We will assist you in choosing the best deductible options, acting as your lifeline and saving you from the stress of making these challenging decisions alone.
