Factors to Consider When Choosing Your Auto Insurance Deductible
If you got into an accident today, would you have enough money to cover the deductible? Do you know what a deductible is? These are the important questions to ask before you shop for auto insurance!
Having auto insurance is so important and choosing your deductible is a big part of customizing your auto insurance plan to fit your needs. An auto insurance deductible is the money you will have to pay out of pocket if you get into an accident; it can often be a source of stress due to a lack of planning. It’s important to do research before choosing your deductible amount.
In this article, you’ll learn four important factors to consider when choosing your auto insurance deductible.
- Are you a high-risk driver?
Have you ever been in an accident? Do you have a previous DUI or speeding violation? These are the questions that will affect a person’s deductible. If you have no previous violations and you’re not likely to get into an accident, you’re considered low-risk and will benefit with lower monthly premiums. Choose a higher deductible only if your chances of getting into an accident are low or if you prefer paying a higher deductible over higher monthly insurance payments.
Tip! Put away the extra cash you save by keeping your monthly payments low in case you need to file a claim.
- Is your vehicle worth the insurance cost?
If you’re driving an older car or one that needs frequent repairs, save your money by keeping your monthly premiums low. You may prefer to choose a liability-only policy that fulfills state requirements.
- Is your environment a risk?
A lot of the risk of having a car comes from your environment and not from you, as the driver. Do you live in an area with frequent thefts and break-ins? Do you live in a city where your car is more likely to get damaged? These are what insurers call uncontrolled accidents and if they’re likely to happen to you, it might be smart to keep your deductibles low.
- What is your budget?
Arguably the most important factor to consider when choosing your deductible is your budget. If you know you couldn’t pay your $1000 deductible after an accident, it might be smart to pay higher monthly premiums and keep your deductible low. If you can’t afford the higher monthly premiums, choose a higher deductible. There is a risk, either way, so choose the option that best fits your budget and lifestyle!
Get Auto Insurance Today!
No matter what your budget or situation looks like, Insure on the Spot believes everyone deserves a trustful, fast way to shop for auto insurance. Contact us today and get insured in just 2 minutes!
