Choosing The Right Car Insurance Deductible

Accident may happen to anyone on the road, sooner or later, so it is necessary to cover yourself by the most reliable auto insurance coverage. There are two types of auto insurance coverage: Comprehensive coverage and Collision coverage. Comprehensive car insurance coverage insures your car against vandalism, fire, theft, weather mishaps. In some cases, it may provide the coverage to the contents of a vehicle, but not to aftermarket accessories. Collision coverage pays for damages to or replacement of your vehicle arising from an accident which happened on the road, damage from loose debris on the roadway, or damage from the roadway itself .But it might not cover the damage incurred in parking lot while the car is parked, even if another vehicle is involved. Collision and comprehensive insurance is not required by any state, but it is highly recommended for most drivers.

If you choose this coverage then it is seen that most of the people pay deductibles. When you are covered by collision insurance coverage then you need to decide on an insurance deductible. For example, if you have a minor accident and you have selected a $2,000 insurance deductible and the damage is around $1800 then your car insurance company may pay no money for the repairs or others and you on the role of driver are required to pay the first $2,000 of the bills that are incurred.

If you have a car accident and you already file a claim then the deductible helps to balance the costs which may be very cost effective. If your deductible is less than your repair bill, then your car insurance company may pay the rest of the costs beyond for which you may be financially responsible for.

One of the ways to lower your premium is to increase your deductibles as a car insurance company rewards its policy holders with much lower premiums if they increase their insurance deductible. If drivers keep some money for the saving purpose then they should consider having the highest deductible possible to save money on their car insurance.

It is very important for drivers to put themselves in such position where they can save as much money as possible on their car insurance coverage by doing whatever required. If you met with an accident and if the damage is less than your deductible then you may not file an insurance claim because in this situation it is a waste of time and it may adversely affect your driving record.

Every time when you involved in a car accident, this is like you conduct strike with your insurance company against them. If you know in advance that you can prepare the repairs yourself and they are not very major ones, then this can be very cost effective and may help to prevent any new blemishes from being added to your driving record. Anyway you may have to pay your deductible so it is the smartest choice possible.

One thing is to be noted that your car insurance company does not cover everything , it mainly focus on providing benefits for major/ big accidents and not for the minor accidents because they feel that covering bigger expenses is the way to go. This is necessary to understand because many people think that their car insurance company covers everything whether it is a small or big accident. For example, you met with an accident and a window is broken, then this is not something your car insurance company usually pays for because it would cost less to repair than a $500 deductible.

Mostly car insurance deductibles may range from $500 to $2,500 so it’s up to you because more you keep for the deductible, more discounts you may receive from the insurance company. Before you apply for a car insurance policy, try out several insurance quotes with varying deductibles because there are different car insurance coverage provider and deductible so you have to see which insurance coverage provider will suit you as per your needs and budget.