Thursday, November 8, 2018

How To Choose the Right Auto Insurance Deductible

When quoting auto insurance for clients, we frequently discuss how to choose the right deductible. Let's take a few minutes to share this information here on our blog, too.

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 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, $1,000), the lower your monthly cost.

So, what's the best choice for you? Cheaper price or lower out-of-pocket expense?

First, look at how much you have in your emergency savings.  Do you have enough cash available to cover a higher deductible if you had to pay it?  If the answer is no, then you’re better off paying a little extra each month, because in the event of an accident you might have trouble coming up with the higher deductible amount.

Compare the cost savings. When we run a quote, we can show you several different options. Ask your SAV-ON 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 costs next year, you’re always able to lower your deductible at that time.  Keep your deductible in a comfortable range and you’ll always be well protected! 

Call SAV-ON Insurance at 888-867-2866 for more information and a personalized quote!  

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