Low Deductible Auto Insurance

When you’re buying auto insurance online is it better to have a low deductible or a high deductible? People who are buying car insurance always wonder if they should choose a low deductible when they buy a new car insurance policy or a high deductible. How can you tell which deductible is right for you?

If you choose to buy a auto insurance policy that has a high deductible then the overall cost of your policy will be lower and you will end up paying more out of pocket if you have an accident. Most people choose to have a high deductible so that they will pay less overall for the insurance policy. But if you are going to choose a high deductible so that you have a lower monthly payment or a lower overall policy cost make sure that the deductible you choose is an amount that you could easily come up with you have to.

For example, if you choose a deductible of $1000 would you realistically be able to come up with $1000 to get your car fixed if you had an accident? It’s not enough to just hope that you don’t have an accident. Make sure that you choose a deductible that is low enough that you wouldn’t have any trouble paying it if you needed to.

If you choose a car insurance policy with a low deductible you will pay more for the overall policy and if you make monthly payments your monthly payments will probably be higher however if you do need to get your vehicle fixed it will most likely not cause a financial crisis for you. People that are on limited incomes or fixed incomes often choose a auto insurance policy that has a low deductible because they would have trouble coming with the cash for a high deductible payment something happened and they needed to get their vehicle fixed.

So is a low deductible better when it comes to buying auto insurance? To know for sure if a low deductible is right for you it’s important to sit down and assess your income and savings so that you know if you could pay a high deductible if you had to. If you would have trouble coming up with a large chunk of money to pay for a deductible then you are better off choosing a policy that has a higher overall cost but a low deductible.