Auto Insurance Deductibles Demystified!

figuring out the correct deductable amount for you should not be a mystery hi I’m Michael with answer financial and today we’re going to discuss a few simple ways to determine the deductible that fits your personal situation for those who aren’t familiar with the term deductible this is the amount the insurance company deduct from the damage cost because you are responsible for paying it in essence it is the amount of risk you’re willing to accept deductibles normally range from $250 to $1,500 per accident depending on your state insurance regulations and what level of kirbridge you choose having a lower deductible like $250 will mean your insurance premium will be higher conversely having a high deductible like $1500 will translate to having a lower premium if you are financing your car the finance company will specify your minimum insurance and deductibles here’s an example of how it works if you’ve taken a $500 deductible and there’s an accident you are responsible for paying up to five hundred dollars out of your own pocket the insurance company will then pay any additional cost to repair your vehicle if the damage is five hundred dollars or less you pick up the full tab why would you choose a low deductible lower deductibles make more sense when you don’t have a lot of money set aside in an emergency fund have had several accidents whether or not you were at fault live in a city or a place where accidents and natural disasters are fairly common when would you choose a higher deductible higher deductibles can make more sense when you want to save money on your monthly premiums have very few or no accidents have enough money set aside to be comfortable assuming a higher out-of-pocket risk in case you are in an accident remember the monthly amount you save on your premiums by raising the deductible may not be enough to justify the risk find out what the difference in premium would be and compare to the cost to come up with the deductible in case of an accident if you need to pay more out-of-pocket to repair your car you may lose any savings you would see from a high deductible talked to one of our insurance experts to help you decide on the right deductibles for you and your car answer financial is one of the largest auto and home insurance agencies in the Us with over 2.8 million vehicles and homes insured there is a lot more useful info available on our website at answer financial com or call us at one eight six six six three five seven seven seven seven you.

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