All About Auto Insurance Deductibles
Perhaps the most important consideration you'll need to make is your auto insurance deductible level. This is the one factor that you have full control over, without state restrictions or requirements. It's also the factor that could save you hundreds -- or even thousands -- of dollars on auto insurance coverage.
It's important to pick a deductible that you can afford (and for which you have a reserve of savings in order to cover in the event of an accident). Your auto insurance deductible is largely determined by your own personal budgetary needs and abilities. Standard deductibles are usually in increments of $100, $250, $500, and $1,000.
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Choosing the Right Deductible Amount
With a deductible, you are required to pay the standard amount; the auto insurance company makes up the difference in cost. If you choose a higher deductible, then you will receive a lower premium; if you decide that you want a low deductible in the event of an accident, then you'll need to pay a higher premium. According to the Insurance Information Institute, increasing your deductible from $200 to $500 could lower your collision and comprehensive coverage premium by as much as 30 percent.
Here's a bit of a breakdown of your various deductible options:
$0-$100 deductibles:
- Not very common and difficult to find
- Premiums will be very high
$250 deductibles:
- Usually only available to "preferred" drivers and drivers with a good record
- Premiums are expensive but not unmanageable
$500 deductibles:
- Available through most standard auto insurance policies
- Not your cheapest option, but considerably less expensive than no-deductible or low deductible auto insurance coverage
$1000 deductibles:
- Many people choose this because of its low premium
- Some car lease companies and auto lenders won't allow you to purchase this type of "high-deductible" coverage
Whatever deductible level you want, we can help. Request a auto insurance quote today!
Deductible Requirements and Restrictions
Some lenders will require that you have a maximum deductible on your auto insurance. Certain auto leasers may also set a maximum deductible amount. Other than these two isolated circumstances, you are allowed to choose whichever deductible best fits your own unique needs.
Let Us Help You Find the Right Deductible
Coverage.org is here to help you assess your own unique needs and financial situation. If you request a quote for auto coverage through this site, then an experienced representative will be able to advise you on your options. Even if you currently have an auto insurance policy, we may be able to help you save money on your car insurance coverage. Start today by requesting a free auto insurance quote from Coverage.org.
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Sources
http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm
http://www.ehow.com/how_4729762_choose-right-auto-insurance-deductible.html