| Your auto insurance deductible
is the amount you pay out of your own pocket before your auto insurance
company starts paying. The higher you are will to pay for your deductible
on collision and comprehensive coverage, the lower your car insurance
premium. Increasing your deductible from $200 to $500 could reduce
your comprehensive/collision cost by 15% to 30%.
Drivers should take a few factors into consideration when determining
the amount to set the deductible.
- Are you financially comfortable paying the set amount of deductible
if you needed to file a claim? If you are financially strapped
every month or have little or no savings, a high deductible may
not make sense for you.
- How frequently do you file a claim? If you are usually accident
or claim free, a higher deductible can lower your auto insurance
premium.
- Does increasing your deductible save you more money over the
long run? Compare the amount of savings you would get if you increase
your deductible.
You can opt to change your deductible at any time by notifying your
auto insurance company.
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