What is a Deductible?
A deductible is the amount you pay out-of-pocket when you have a claim. If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and your insurance would cover the rest.
The deductible you choose directly relates to the amount of money you spend on premiums each month. The higher the deductible ($250, $500 or $1,000), the lower your monthly cost.
So How Do You Choose?
Cheaper price or lower out-of-pocket expense?
First, look at your emergency savings. Do you have enough cash available to cover a higher deductible if you needed to pay it? If the answer is no, then you’re better off paying a little extra each month.
Compare the cost savings. When we run a quote, we can show you several different options. Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings.
You can always change your mind. If you’re short on cash now, but know you could afford more out-of-pocket next year, you’re always able to change. Keep your deductible in a comfortable range and you’ll always be well protected!
Questions? Call SAV-ON Insurance at 888-867-2866 for more information and a personalized quote. We're here to help!