Choosing a Deductible Can Be Difficult
The vehicle we select to drive, and the deductible we want to pay are highly personal decisions. Your income, the size of your emergency fund, and the amount of risk you are willing to take can make choosing one deductible over another a more sensible choice. You do not ‘meet’ an auto insurance deductible as you do with a health insurance deductible.
An auto insurance deductible is something you pay each time you file a claim with your insurance company and before your policy coverages kick in. Deductibles allow drivers to share the financial risk with their insurers and range from zero to $1,000 or more with fewer insurance carriers offering a zero deductible. It is important to choose a deductible you will be able to easily afford.
6 Tips
- Your Emergency Fund – Do you have an emergency fund and if so, is it flourishing or depleting? If you have a stash of cash, saving money on your car insurance by choosing a higher deductible makes sense and will not break the bank if you do need to file a claim. If you know coming up with the amount to pay a high deductible will be near impossible, it would be best to pay more for your insurance policy and opt for the lower deductible. Alternatively, if a lower premium is all you can afford, you can choose the higher deductible while setting money aside in an emergency fund in the event you ever need to pay this deductible.
- Know the Value of Your Vehicle – Your vehicle’s value can play a big part in choosing your deductible. The more your car is worth, the more it will cost to repair. A high deductible makes the most sense on a vehicle that is high in value since the savings will be more significant.
- What is Your Risk Level? – Are you a high-risk driver who has a high likelihood of filing a claim with your insurance company? If so, a low deductible may save you money since you will need to pay the deductible with each claim filed.
- Vanishing Deductibles – A vanishing deductible, while growing in popularity, is not always a good option. By paying an additional premium on your insurance, your deductible vanishes. It may make more sense to save money in an emergency fund to pay for this deductible. If your emergency fund is always disappearing, a vanishing deductible may work for you.
- Different Deductibles, Different Coverages – Many drivers choose different deductibles for their comprehensive and collision coverage. It is recommended that you have the same coverage and deductibles on all your vehicles. Comprehensive coverage is less expensive, so a lower deductible makes sense. Collision coverage is pricier making a high deductible a better option. Know what your deductibles are, so you are prepared.
- The Gordon Agency Can Help – The Gordon Agency can tell you what each deductible will cost and help you choose the best deductible to meet your needs.
The Gordon Agency
The Gordon Agency is Florida’s Premier Home Owners and Auto Insurance Agency. We proudly represent a wide variety of quality carriers and can help you choose the policy with the best deductible.
This is the home of Florida’s Insurance Professionals. We are a multi-lines independent agency that provides insurance solutions for both personal and commercial lines. Combining decades of relationship building with motivated licensed insurance agents to provide coverage options for all of your insurance needs.
Our team of agents relies on our education, integrity, experience, and attention to detail to properly assess each opportunity and to offer the optimal solutions for all of our clients. We are dedicated to matching the right product to every situation, always at the best price available. Call us at 561-988-3330, visit our website or paste our address in your browser https://tgafl.com/.
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Choosing the right car insurance in Nova Scotia is an important decision. A higher deductible can lower your monthly premium, but it also means you’ll have to pay more out of pocket in the event of an accident. On the other hand, a lower deductible means you’ll pay less out of pocket, but your monthly premium will be higher. Ultimately, it’s important to find the right balance between your budget and your level of risk tolerance when choosing your car insurance deductible.
My daughter is getting car insurance and has a lot of questions about deductibles and other aspects of it. I’ll have to share what you explained about how different coverages have different deductibles. I think it can help her to make more sense of what she’s been researching so far.
My daughter is purchasing auto insurance and has several inquiries regarding deductibles and other features. I’ll have to mention what you said about how having the same coverage and deductibles on all of your vehicles is advised. A smaller deductible makes it logical because comprehensive coverage is less expensive. I believe it will enable her to better understand the subject matter of her earlier studies, thanks to your article.
My confusion concerning auto insurance was solved after reading your article. There was no more room for doubt in my mind after reading this.
Semel Risk Consultants
My niece has numerous questions about deductibles and other features as she shops for vehicle insurance. I’ll have to bring up what you mentioned about it being wise to have the same insurance and deductibles for all of your vehicles. It makes sense to have a lower deductible because comprehensive coverage is more affordable. Thanks to your post, I think she will be able to comprehend the subject matter of her prior studies more fully.
Okay, I think you did the right thing by suggesting that selecting our auto insurance deductible requires us to consider our vehicle’s market valuation. A friend of mine lives in Louisiana and he plans to buy a secondhand car this summer. It would be great if he consults an agent before choosing a policy later.
Tips for choosing an auto insurance deductible that fits your needs are offered in this post, making it a great resource for anyone looking to make an informed choice about their car insurance policy.
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Your article on choosing an auto insurance deductible was a great read. I particularly liked your tip about considering the age and condition of your car when choosing a deductible. It’s so important to make sure you have the right coverage for your vehicle, and this tip helps people make an informed decision.
I also wanted to mention that when choosing an auto insurance policy, it’s important to consider if you need auto repair shop insurance coverage. This type of coverage can help protect your business if there’s damage to a customer’s car while it’s in your care. It can also cover any legal fees if a customer decides to sue your business. Adding this coverage to your auto insurance policy can provide you with peace of mind and help protect your business from unexpected events.
Overall, your article provides great information for those looking to choose the right auto insurance policy. Keep up the great work!
I appreciate you helping me to understand that the value of a vehicle can help you pick your insurance deductible. My 16-year-old daughter is going to be getting her driver’s license soon, so I will have to purchase insurance that will cover the vehicle she ends up getting. It seems like it would be a good idea for my daughter to get a used vehicle so that the deductible will be lower.
It really helped when you explained that we’d know the real value of our vehicle to choose our insurance deductible. I have a cousin who bought a car a few days ago, and she’s looking for an insurance plan right now, so I’ll make sure she reads your tips first. Thank you for the advice on how high-valued cars come with costly repairs.
Thank you for explaining that knowing the value of your car can help with finding car insurance. We need some new insurance on our cars. I’ll be sure to look into this more to see how it helps us with this.
Thank you for pointing out that different deductibles will have different coverages. I’m still trying to navigate getting car insurance that we want. I’ll be sure to keep this in mind when talking to different providers.
It was helpful to know that the value of our vehicle can help us choose our deductible since it will cost more to repair our car if the vehicle itself is worth more. I will be buying a bigger car for our family this spring, so I need an insurance plan ready for it before I make my new investment. I’ll keep this in mind while I look around Lakeland soon for a car insurance company to call for inquiries about their coverage.