Choosing Auto Insurance Deductibles

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Auto Insurance - Choosing Deductibles

What are auto insurance deductibles? It's what you pay in case of a comprehensive and collision (abbreviation: comp/coll) claim which pays for physical damage to vehicles listed in your policy. In a sense, it's the specified amount money, (deductibles) that you pitch in towards your vehicle's repair or replacement. It is important be properly informed in order to make a smart decision when choosing deductibles. This coverage is what may protect your vehicle in case of an at fault accident.

Deductibles can be preset at different amounts for each comprehensive and collision although commonly the same.

The most common choices of deductibles are as follows:

$0-$100 deductibles:
- Least common;
- May be expensive.
$250 deductibles:
- Less common, usually for those within the preferred market (those with low risk factors);
- May increase rates considerably but may be a good idea to quote.
$500 deductibles:
- Among the most common choices;
- May not be the cheapest
$1000 deductibles:
- Among the most common choices;
- Among the least expensive.

Anything above that is uncommon and may not be practical because for example if you have a $2,000 deductible, that's what you will have to pitch in towards your vehicle repairs or replacement. What if the damages only amount to $1000? The whole point of comp and collision coverage is to help you avoid the expense involved the damaged or total loss of your vehicle.

The proper thing to do is to obtain quotes on different deductibles and write it down. This way you can take them all into consideration an make a good choice based on your needs.

Keep in mind the following pointers when choosing deductibles:

The lower the deductible:
- The least you will pay in case of a claim;
- The higher the premium will usually be.
The higher the deductible:
- The more you will have to pay in case of a claim;
- The lower your premium will usually be.

Get more help on choosing auto insurance coverage to fit your needs and budget.

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Auto Insurance - Choosing Deductibles

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