Article 5 of 8 in Buying Car Insurance - Discounts and Savings
When you sign up for an auto insurance policy, you will have to choose your auto insurance deductible payment amounts as part of your plan. Your car insurance deductible becomes important whenever there is damage to your vehicle, and you intend to use your insurance as a means to pay for it. When filing a claim, you will have to pay your auto insurance deductible to cover some of the damages, and then your insurance company will pay for the rest according to your car insurance policy.
EXAMPLE: To illustrate how your car insurance deductible operates, consider the scenario in which your automobile insurance policy comes with a $100 deductible payment. If your car suffers $500 in damages that are covered by your car insurance and you wish to file a claim to have them help you pay for the repairs, you will pay your car insurance deductible amount of $100 and your insurance will pay the remaining $400.
How Your Car Insurance Deductible Affects Premium Payments
Your car insurance deductible translates into money you will have to pay in order to settle a damages claim that your car insurance company does not. This means that if you select a car insurance policy with a higher deductible payment, you will be able to get cheaper car insurance. On the other hand, if you select a policy with a lower deductible payment, then your monthly premium payments will be higher.
How to Choose the Right Car Insurance Deductible
When comparing auto insurance plans you will be given the option of what your deductible payment will be. Your personal finances are always a deciding factor when selecting a car insurance policy, and, as stated above, your choice will impact the amount of your monthly payments. However, because you are not certain about if and when you need to make a car insurance deductible payment, be sure to consider the following:
Reduce Your Car Insurance Deductible
Several insurers now offer car insurance discounts or programs to significantly decrease your car insurance deductible in exchange for your good driving record. When selecting a car insurance company, ask them if they offer a reduction in your car insurance deductible if you are not involved in any accidents, or do not have any traffic citations.
TIP: If you are a good driver and want to be rewarded for it by a reducing car insurance deductible payment, then consider a company with a plan that will accommodate you.
For more information about getting the right car insurance policy to fit your needs, check out the following articles:
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