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Will you go with a lower premium or is it more important to have a lower deductible? Since your deductible is one of the most important decisions you will make in choosing an auto insurance policy it’s important to understand what a deductible is.
What is an Auto Insurance Deductible?
It is the amount of money you are responsible for paying out of your pocket before your car insurance coverage starts to have effect for any claims for insured events. For many drivers, the advantage of securing an auto insurance policy with a high deductible means lower auto insurance premiums but it also poses a higher out of pocket cost in the case of an accident.
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Car insurance companies offer a wide range of options when it comes to a policy deductible. Most consumers have auto insurance coverage with a policy deductible between $250 and $1000 however the typical choices are for a policy with no deductible all the way up to $2,500. When you purchase car insurance is important to consider your monthly budget and your financial resources to find a balance between affordable premiums and the ability to pay a deductible when you least expect it – since
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