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Determining The Auto Insurance Deductible That Is Right For You

Tuesday, October 12th, 2010

Finding an auto insurance quote is easier than ever, thanks to the myriad of companies that have chosen to take their business online. For consumers, a simple search will pull up a host of automobile insurance quote sites, many of which offer other insurance options as well. This can make the task of choosing the right auto insurance quote difficult, as every site will offer a different deal, a different option that helps to make their product and service more attractive. Add to this the fact that many will also offer bundled services with home insurance or discounts for more than one vehicle or driver in a household, and it is no wonder that many Americans have trouble choosing the auto insurance quote that is right for their needs. As with many things, however, the best way to go about choosing auto insurance is to start with the basics—what type of auto insurance deductible is right for you and your family?

An auto insurance deductible is the monetary amount a consumer is required to pay before the insurance company will pay out any money for damages to a vehicle. This leaves consumers with several options to make their lives simpler and easier when it comes to car insurance. The first option available to consumers is to increase the amount of their auto insurance deductible to double or triple what the company offers. This will mean lower risk for the insurance company, as there will be a lesser chance that it will have to pay for any damages. In turn, this will mean smaller premiums for a consumer, which can add up to a significant savings if no accidents occur. If a serious accident does happen, however, an insured can find themselves with a significant bill on their hands before the insurance company will be of any assistance.

The other option is for consumers to lower their deductible. Not all auto insurance companies will offer this service, but those that do will also increase the cost of a policy premium in order to off-set the lower deductible. This can be of benefit for those that do a great deal of driving for business or for pleasure, as their chances of being in an accident are far higher than those of casual drivers. While this option can be expensive due to the greater risk assumed by the insurance company, it can also be a boon to a driver who has a history of minor accidents.

No matter the type of deductible chosen, a driver must always be aware of just what they need to do in order to have their insurance coverage both begin assessing a claim and successfully completing it.

Auto Insurance Deductible

Wednesday, June 17th, 2009

Auto insurance deductibles are defined as what the insured party pays in the event a claim for damages needs to be filed and only applies to full coverage auto insurance policies. Auto insurance policies for liability only do not have deductibles. The amount you choose for the deductible affects the total price of the premium. A good example is when comprehensive and collision automobile insurance policies have a preset amount that is paid if a claim is filed. If the insured vehicle sustains damage for an amount of say $5,000 and the auto insurance policy has a deductible of $1,000 the insurance company will pay $4,000 and the insured has to pay for the balance of the repairs. It is best to get several auto insurance quotes with various deductibles to determine the best choice.

In order to make the best decision possible for your deductible, the amount of coverage first needs to be determined. If the vehicle is older, choosing a full coverage auto insurance policy may not be the best choice since state requirements may be enough. Choosing full coverage on an older vehicle may actually be more coverage than the vehicle is actually worth.

If the vehicle is a luxury vehicle, sports car or any type of high end vehicle then choosing a full coverage (comprehensive and collision) auto insurance policy is definitely the way to go. If the vehicle is financed through a financial institution, the financial institution will require the vehicle to have a full coverage auto insurance policy. Repairing a vehicle can be expensive so paying the smaller amount for the cost of repairs saves the insured money in the end.

The main thing to consider when choosing a deductible is to determine exactly what is affordable if the insured has to pay for damages to their vehicle. If paying $1,000 to repair damages is not affordable then an auto insurance policy with a lower deductible should be chosen.

However, choosing a higher deductible means less out of pocket expenses for the insured and a lower premium. Always get several auto insurance quotes in various amounts to determine monthly savings versus paying a higher auto insurance deductible.

There needs to be a lot of thought involved in choosing the right auto insurance. Choosing cheap auto insurance with a high deductible may cause financial stress to pay the premium. If the insured has to wait to pay for damages to the vehicle that delays getting the vehicle repaired. If the vehicle is used to drive to work every day and cannot be driven due to damages, the insured again cannot pay for repairs since they are unable to work due to lack of transportation.

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