How High Of A Deductible Should I Get With My Auto Insurance Policy?

You’ve done your shopping around, met with some sales people, test driven a number of different cars and you’ve finally made your decision to purchase. Congratulations! Now comes one of the more difficult decisions you’ll make: choosing between the incredibly diverse array of auto insurance policies that are on the market to ensure that you get coverage that matches your budget and protects you, your friends and family, and your automobile.calculating your deductible

When choosing auto insurance, one of the ways you can tweak the cost involved is to play around with the deductible – the amount that you will pay to cover the cost of damage before your auto insurance company pays the rest. For example, if you are in a crash with a total cost to you of $5000 and you have a deductible of $500 you’ll pay the first $500 and your insurer will pick up the tab for the other $4500. In this article we’ll take a look at auto insurance deductibles and share some tips on determining how high of a deductible you should get with your new auto insurance policy.

Look To Your Budget For Suggestions On Your Deductibles

As the primary reason to mess around with the deductible is to change the cost of your insurance, it’s important to take a look at your budget and determine exactly how much you can contribute to auto insurance each year. If you know that you can only afford the minimum coverage on your automobile you may end up with a higher deductible than you feel comfortable with. If you can find some room in your budget to spend a bit more on a better auto insurance policy, you can get a lower deductible which can be a real money-saver in the event of an accident.

Remember – while you might save some cash over the short term by going with a higher deductible, all it takes is one serious accident for those savings to be completely wiped out. If you end up in an expensive crash and have to shell out $2,000 or more for your deductible, you might have been better off going with the increased auto insurance rates and lower deductible in the first place.

Auto Accidents Aren’t Getting any Cheaper

One important factor to consider is that automobile accidents aren’t getting any less expensive to deal with. With the cost of medical treatment rising each year, property values constantly increasing and the rates charged by repair shops going up, every crash you get in to has the chance of costing you a small fortune. Even if the accident is just a “fender bender”, modern cars are built with crumple zones and other areas which give up durability in the name of safely absorbing impact. What used to be a small dent can now end up being a crushed body panel, leading to higher repair costs.

It probably sounds cliché – and a little boring – but it really does pay off to be a safe driver. If the only auto insurance you can afford comes with a high deductible, you may want to consider taking some additional care every time you get behind the wheel. The fewer crashes you get in to, the fewer times you’ll have to shell out for repairs.

A Few Questions To Ask Yourself Regarding Your Deductible

Figuring out where to balance your risk via your deductible can be pretty stressful – there’s no way around it. Here are a few questions to ask yourself that can help make the decision a bit easier:

  1. How much can I truly afford if I was to get into an expensive auto accident tomorrow?
  2. Can I afford to spend an additional $100 or $200 a year on insurance if it means paying far less up front in the event of an accident?
  3. Have I shopped around and gotten quotes from a number of different auto insurance companies to see who has a deductible that looks attractive and is in my price range?
  4. Have I leveraged any association or other discounts to save a bit on my overall insurance package and then applied these savings to reducing my deductible?

If you have the answers to these four questions above, you’re better educated on your auto insurance purchase than most.

Making the Final Decision with your Insurance Agent

If all of this talk about managing deductibles sounds a little bit confusing, don’t be alarmed. Auto insurance can be difficult to understand, which is why insurance agents are there to assist you. Have an online chat or a sit-down with an agent to learn more about deductibles and how they can impact your total auto insurance cost. Try to avoid looking at the cost over a single year, as you might believe that your chance of getting in a crash is pretty low and you can just get away with a higher deductible. Think out five or more years – at least until the end of your car lease or payment. Remember: you don’t choose to get in an accident, but you can choose your insurance and how you’re covered if it occurs. is here to assist you with getting the best deal from the many auto insurance providers in the marketplace today. Our team scours the internet for savings to pass them on to you, so you can get your auto insurance at the best possible price. To get a free quote from a number of different providers and to see how much you can save, enter your ZIP code in the quick form at the top of this page and we’ll take care of the rest. Thanks for visiting!

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