Tips To Help Drivers Understand Car Insurance Deductibles
Many people do not understand car insurance deductibles. It is a good idea for drivers to have a deducible in place because it can lower their overall car insurance premiums. Most car insurance companies today allow drivers to take out an insurance deductible from $250 to up to $2,500. It is in a driver’s best interests to think about these tips before taking out an insurance deductible on their vehicle.
The first tip is to know your own financial limitations. If you cannot afford a $2,500 deductible at the drop of a hat, then you want to set your sights a bit lower into a price range that you can afford.
The second tip is to consider your situation. For example, if you own a brand new sports car, then you will have high car insurance premiums because your car is more costly to replace. If a driver has an insurance deductible of $250 per month and then decides to take the initiative to increase their deductible to $2,500, then surprisingly their insurance premiums can drop by fifty percent. This is why it is crucial to evaluate your situation very carefully.
The third tip is to consider the costs that might be associated with repairing your car. For example, if you own a seven year old compact car, then you would probably want a lower insurance deductible because your car might not be that expensive to repair.
The fourth tip is to consider dropping collision or comprehensive car insurance coverage if you own your car. Many people who own their cars have high car insurance deductibles. If you own your car and it is an older vehicle, then consider just having minimum liability coverage in place. This can save drivers a lot of money.
The fifth tip is to shop around for coverage. Car insurance premiums with one specific deductible may differ with other car insurance companies. Take the time to contact other insurers and see what they can offer you.
The sixth and final tip is to at least have a$500 or $1,000 insurance deductible if you can. In today’s economy, taking on more of the financial burden for repairs may seem daunting but in the end it pans out for drivers. The more drivers who pay something towards their car accident repairs, the less compensation in claims car insurance companies have to pay out. This helps the entire insurance pool have lower premium rates.