How much is your auto insurance deductible? How did you choose it? Most people consider only one thing when choosing their insurance deductible – the amount of money it can save them in their premiums. However, it is risky to have a large deductible unless:
You Can Afford It
Affordability is one of the most important factors when deciding on an insurance deductible. You don't want to choose a $1,500 deductible when it is clear to you that you won't be able to raise the money when an accident occurs.
Obviously, you are the only one who knows how much you can afford. Ideally, you should always be able to withdraw the chosen amount from your account, or get it at a moment's notice, because you never know when you may be involved in an accident.
You Aren't Likely to Get Involved in an Accident
Obviously, no one can tell exactly when or how many times he or she will be involved in an accident. Statistically, however, there are factors that increase your chances of getting involved in an accident or incident that demands a claim filing. For example, chances of your car getting involved in an accident, damaged, or vandalized increase if you:
Analyze your driving habits, and if you consider yourself a safe driver and car owner, then you can go for a higher deductible. Otherwise, lower your deductible so that you aren't slapped with a high expense when one of the risks insured occurs.
You Drive an Expensive Car
Expensive (or new vehicles) cars cost more to insure. Therefore, if you drive an expensive model, then you are likely to be on the lookout for anything that can lower your premiums. One of these ways is to increase your deductible level. What is more, these expensive cars also cost more to repair so the difference between the repair bill and the deductible will still be appreciable.
Analyze all these factors, but the bottom line is that you should always be covered for all eventualities. Whether the money comes from your pocket or the insurance company, you should always be in a position to pay for all risks that you have to pay for. Perhaps you can ask your insurance agent to help you with the numbers. (for information on auto insurance, contact Holt Insurance Services)
Share26 January 2015
About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.
