Whenever you want to save money on car insurance premiums, one of the quickest ways to do this is to raise your deductible. Signing up to the highest possible deductible certainly has its pros and cons. Think about how much you want to save on car insurance premiums as well as whether you have adequate savings to pay for car repairs and injuries out of pocket if an accident occurs.
When to take a high deductible
A high car insurance deductible means that you’ll save on monthly premiums. Consider this option if you are ready to part with your cash when you have to make a claim. If you lack adequate savings to pay for car repairs and injuries, avoid a high deductible. Most car owners will choose a high deductible in order to avoid making claims frequently. Remember that when you make claims frequently, the insurance company can raise the cost of your policy because you are considered at an increased risk. Therefore, taking a high deductible can result in making fewer claims which ultimately gives you more affordable car insurance options.
When to take a low deductible
You may afford a high deductible but it makes more sense to take a lower one. For instance, if you know you often live from hand to mouth, it makes sense to pay for full coverage and a lower deductible so that you don’t have to pay out of pocket expenses for car repairs when involved in an accident. Just ensure that you get car insurance premiums that you can afford. This is because when the deductible is too low, you end up paying high premiums.
Are your car insurance premiums too high?
If you’re looking to cut back on your car insurance premiums, don’t just rush to get a high deductible on your comprehensive coverage. There are numerous ways to do this and ensure you don’t find yourself in a fix when an accident occurs and you have to pay for repairs out of pocket. Your comprehensive coverage is designed to cater for theft and other disasters, therefore, you may want to consider paying a higher deductible on your collision coverage instead.
With a higher collision deductible, you can save a good amount of money every year especially if you are a young driver. However, you need to control your driving habits to minimize the risk of being involved in an accident and having to pay out of pocket.
In a nutshell
A big auto insurance deductible may not be appealing to most car owners because they simply don’t want to pay huge out of pocket expenses especially when they are not at fault. However, the fact that you will be saving significantly on premiums makes high insurance deductibles worth considering. Just ensure you know how much you’re willing to spend on premiums and how much you can save in the bank to cater for any unexpected costs if involved in a car accident.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487