What should I choose for my car insurance deductible?

One of the most important factors when deciding on your car insurance policy is the deductible. The deductible is the amount of money that you’re responsible for paying out of pocket, before your insurance coverage kicks in and covers the rest. Deciding on an auto insurance deductible really depends on your personal situation, finances and how much risk you’re comfortable with.

Some important things to keep in mind:

• How much do you have saved up? If you’re going to choose a higher deductible (which usually means a lower monthly payment) you should be confident that you will be able to pay for the deductible if the time comes. Conversely, a lower deductible can make things easier if an accident were to occur, however, be sure you’re able to afford the typically higher premium, which makes for higher monthly payments.
• How much is your vehicle worth? If you have an expensive vehicle, a higher deductible can make sense as the savings on repairs can be significant. For less valuable vehicles, a higher deductible may not make sense, as the amount you would end up paying could be close to the vehicle’s entire value.
• How much coverage do you want/need? This is going to affect your car insurance premium as well as the different deductibles available to you. You obviously want to be covered for as many unexpected situations as possible, but when deciding on how much coverage to get, you’ll need to take into account how much coverage you can afford, and how much risk you’re comfortable with taking.
• How much risk do you have? Your amount of risk depends on you, your location, and your situation. How’s your commute? Do you often drive during rush hour or other busier times? Do you usually have to drive through dangerous or busy intersections? How common are deer-related accidents in your area? You’ll need to consider things like this when thinking about your risk.
• Vanishing deductible? Vanishing deductibles have become increasingly popular, but whether or not it’s a good option depends on you. In order to receive a vanishing or reduced deductible, you have to pay an extra premium. So this option would work for people who are able to meet their regular premium payments but would struggle to pay their deductible in the case of an accident.

Most of the factors that go into making a choice around your auto-insurance deductible depend on you and your situation.

Answering the above questions for your own situation is a great way to get started on figuring out your deductible, and the experts at RogersGray are happy to match you with the ideal auto insurer. Get started today by contacting an agent below.