Insurance Basics - How To Choose A Deductible

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.

Ask An Agent - Do I Have Full Coverage?

“Do I have full coverage?” is a popular question around our office. Clients often want to know if they have full coverage or liability only on their auto insurance policy. Unfortunately, there is no such thing as full coverage insurance!

Here’s the problem - “full coverage” has become a common term, but it can mean lots of different things. If a bank tells you that you need full coverage, they typically mean Collision and Comprehensive coverage. But you might think that full coverage means you have everything we offer. And there are a few important differences between the two.

Collision is what fixes or replaces your vehicle if you have an accident.

Comprehensive is what fixes or replaces your vehicle after storm damage, theft, vandalism, and other situations that don’t involve an accident.

These two coverages are usually required by lenders and are sometimes called full coverage. But there are other things you may THINK you have when you say full coverage, that aren’t automatically included.

One of those items is Rental Reimbursement. This is the coverage that supplies you with a rental car while your car is in the shop for repairs due to a claim. Another is Towing coverage, which tows your vehicle if it breaks down or even runs out of gas.

So what should you do to make sure you’re protected? The best recommendation is to work with a local agent who can sit down and review your coverage line by line. We’ll explain each item, make suggestions for gaps you may have in your coverage, and make sure that you know EXACTLY what you’ve got! No more vague “full coverage” nonsense. Call us today for a quote or to review your current policy!