Car Insurance Deductible

For many the question of a higher car insurance deductible or not, is as simple as a higher car insurance deductible means lower car insurance rates. So it is just a matter of logic for these people. If you want lower car insurance rates then get a higher deductible. But there is more to your deductible than this simple logic.

The car insurance deductible is what you have to pay when you file a claim in order for your car insurance provider to pay for the repairs of the accident. This is standard in auto insurance since it is like a way of sharing the risk with your insurance companies. Car insurance providers believe that if you share them some of the risk, then you will be more careful in the way you drive and or treat your vehicle. Even though it may be hard to believe but there is some truth behind this madness. Although a lot of drivers tend to forget that even if they have car insurance, an accident will still cost them because they will have to pay the car insurance deductible before anything gets fixed. Because of high car insurance deductibles the drivers that choose them tend to not make claims for small accidents.

The first thing you should consider when choosing a car insurance deductible is whether or not you actually have the ability to pay the amount if a claim is ever filed. That is why you should base your deductible on what you can afford in a worst case scenario. Because once again, you will have to pay this first BEFORE the insurance provider agrees to pay the rest of the repairs. If you are not good at saving money, then a high car insurance deductible is not for you. You do not want to have to worry about where you will get the money from to pay the deductible since you will already have the accident on your mind.

After considering what you can afford to pay if you ever have to file a claim, you now have to compare car insurance rates and find coverage to go along with the deductible. Generally, comprehensive collision car insurance coverage comes with a deductible. This coverage will pay for the damage to your car or the cash value of your car if it is totaled. If you are still paying for your vehicle this coverage is required by the bank you financed your loan through. Typically a car insurance deductible for this coverage will range from $250 to 1000. Since comprehensive car insurance coverage pays for the damage that is not the result of a collision, some people choose to have a low car insurance deductible. On the other hand, many choose to have a higher deductible. This is usually because they feel the chances of filing a claim for damage that they could not pay for out of their pocket are slim to none. In any case, it is still best to first take into consideration what you can actually afford to pay in case of damage or collision done to your vehicle.

Dont forget to check your other coverages you have on the insurance policy, such as personal injury, and evaluate what you need and what you can afford. So for instance if you have great medical insurance, it maybe a good option for you to not have personal injury coverage if you want to cut cost on your car insurance.