Deductibles
are a big part of your insurance policy and it’s important to know
what they mean and to choose the right amount. Let’s talk about
the basics!
The
collision and comprehensive coverage on your vehicle will each have a
deductible listed. The deductible is the amount YOU will pay out of
pocket before your insurance kicks in.
So
if you choose a $500 deductible and have an accident, then you will
pay $500 and your insurance will cover the rest (up to your policy
limits. Ask us about your particular policy for specifics.)
Deductible options vary from $1000, $500, $250, even as low as $50 in
some cases.
So
how do you choose the right one for you?
First
it’s important to see how your deductible affects your rate. The
lower amount you pay out of pocket after an accident, the higher your
insurance premium. This means you’ll pay more each month for
insurance if you choose to pay less after a claim. We can quote your
policy with different deductibles to give you an idea of the cost.
Second,
you want to look at your savings. If you have a good amount of
emergency savings and could easily pay out $1000 after a claim, then
you would probably want to look at a higher deductible in order to
save on premiums. On the other hand, if you have very little savings
and couldn’t pay out that much after a claim, you might want to
look at a slightly lower deductible that stills fits in your budget.
And
finally the best option - ask your agent for help! We can sit down
and explain ALL the options, rates, and discuss your personal
situation in detail. This way you know that you’ve got the best
coverage at the best possible rate. Call us today at 508-347-9343 to start your
quote.
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