One of the most crucial aspects to buying auto insurance coverage is to make sure you have the right deductible amount for your needs. While there is no right answer, there are a few factors that can help you determine the appropriate figure. Here are three great tips to keep in mind the next time you renew your policy.
1. Choose a deductible you can afford to pay
The first step in choosing the right auto insurance deductible for your needs is to select one you can afford to pay. This means selecting a figure that wouldn’t be too hard to come up with should you be involved in an auto accident right this very minute. Lots of people calculate this figure as being $500 or $1000, but others feel comfortable keeping it at a low $250 or a much higher $2500.
2. Understand your monthly premium budget
It is also important to understand how your chosen deductible affects your monthly premium budget. A lower deductible means that you’ll pay a little bit more each month for auto insurance. For some people, the cost is minimal compared to having to come up with a larger chunk of money if they are ever in an accident. Others don’t see the advantage and would rather the immediate premium savings. This is usually personal financial preference.
3. Check with your lender before making changes
Of course, not everybody has the luxury of changing their car insurance deductible. If you have a loan on your vehicle, it is important to check with your lender first to make sure they don’t have any specific requirements. Most set a maximum cap of $500 or $1000 but don’t mind if you go lower than that figure.
4. Assess your needs
Once you’ve obtained a clear understanding of your coverage options the last thing you need to do is to assess your needs. This step is where you’ll determine the amount of coverage, also known as the policy limit, you would like to purchase and set your deductible.
Are you ready to review your auto insurance policy and select the right deductible for your needs? Contact us today and schedule your appointment.