A higher deductible can help you save on insurance premiums, but you want to make sure you have that amount available in emergency savings in case you need to use it. Let us know if you’d like more info on your deductible!
Your auto insurance deductible is the amount of a covered loss that you pay our of pocket. Generally speaking, the higher your insurance deductible the lower your monthly premium. Auto policies typically have deductibles for two types of coverage, comprehensive and collision. Comprehensive coverage protects your vehicle from events out of your control that aren’t cause by collision. This covers things such as weather-related damage, hitting an animal, and vandalism. On the other hand, collision coverage is for just that, collisions with either another vehicle or object. Additionally, if you lease or are financing your vehicle, your financial institution may require you to carry both types of coverage.
Auto insurance deductibles can range from $100 to $1,000, depending on your carrier and location. Whatever you choose, make sure to select the deductible that works best for you. Some insureds choose to raise their deductible to make their monthly premium more affordable. Remember, you may have to come up with that amount in the event of an accident so keep it within your budget!