Homeowners Insurance Coverage 101May 15, 2018
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’ a car insurance deductible as you do with a health insurance deductible. A car 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.
- 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/
The Gordon Agency
2101 NW Corporate Blvd Ste. 211
Boca Raton, FL 33431
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