How To Choose Your Auto Insurance Deductible To Save Money?
How much risk are you willing to take to spend out of pocket expenses, it is the basis of choosing your insurance deductible.
Lower deductible allows you to share the risk of loss more with the insurance company, but it increases your monthly premium.
It is the amount you are responsible for before the insurance pays. If the cost to repair your car is $2000 and your deductible is $1000, you have to pay the $1000 and the insurance pays $1000.
If you had a deductible of $500, you pay from your pocket for a repair $500 and the insurance pays $1500.
Deductibles apply to your property damage, it does not cover the liability if you’re found legally responsible for damage to someone’s property or cause bodily injury.
Auto Insurance deductibles have differences between states, some states have deductibles up to $1000 or $1500, though most states have deductibles at $250 and $500.
For comprehensive and collision coverages, have different deductibles insurance. Comprehensive covers events such as fire, vandalism, glass damage, theft, etc.
Collision covers vehicle damage due to an accident, regardless of whose fault it is. You have to pay the deductible that applies to the type of claim you have to make.
If the fault of an accident lies in the other party, the damages are fully covered by the other party’s insurance company which provides their liability coverage.
MyMoneyMyQuotes recommends that you keep an emergency fund of a minimum of $500 if you select a $500 deductible. Depending upon the value of your car which you can find from various sites, you can set the maximum deductible for your policy.
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