Selecting your auto insurance deductible is a big component of establishing your coverage. The deductible is the amount of money you pay before your insurance provider pays out on a claim. Because it’s your responsibility to pay out of pocket, the deductible needs to be affordable to you. At the same time, the higher your deductible is, the lower your premium will be. But, setting your deductible isn't always easy to do.
Step 1: Estimate How Much You’re Comfortable Paying
Think about your checking account today. How much cash do you have on hand to pay for an emergency? For some people, this may not be very much. It's important to consider what you commonly have available to you that you could comfortably pay at any given time. Otherwise, your vehicle may not be able to make it out of the shop until you can pay that amount.
Step 2: Get Price Quotes
Auto insurance quotes are free, and you can obtain several of them at one time from your independent insurance agent to compare various features. It's a good idea to avoid choosing a deductible over the amount you are comfortable paying at any given time. Get quotes from several insurers and for various deductible levels to compare the impact on your premium.
Step 3: Talk to Your Agent
Before you decide to go with a deductible level, ask your agent about your options. For example, if the insurer can offer you a discount for choosing a deductible that is just $25 higher than what you are paying for now, it may be worth the upgrade. At the same time, if you can lower your deductible a few dollars without increasing your premium, do so. And, it is always possible to negotiate terms.
Because this is a big component of your car insurance plan, take the time to request multiple quotes comparing various deductible levels. This, along with other discounts you may qualify for, could help you to significantly reduce the cost of auto insurance. Many people can save money on car insurance by adjusting their deductible.
How much could you save? Contact Morehead Agency for more information on Lee's Summit auto insurance.