Why You Should Opt For High Deductible Levels

When it comes to insuring your car, you may want to explore all possible options and make sure you have proper coverage for even some unexpected and unpleasant scenarios. For example, you may want to purchase comprehensive and collision coverage. Besides providing adequate coverage, those policies also come with something that will help you manage the costs better: deductibles. Find out why you should opt for high deductible levels and visit our website for auto insurance quotes online.

Having high comprehensive and collision deductibles on your car insurance policy will mean paying more out of pocket if you collide with another vehicle or building,  your car is stolen or it is damaged by something else than a collision. But high deductibles also mean lower rates for your insurance payments so many people suggest increasing your deductible levels in order to save money. By doing this, you’re taking more financial risk from the company’s shoulders.

Will raising your deductibles really result in that cheap car insurance policy you’d hoped for? Let’s say you’ve got a $1,000 deductible on your new car’s comprehensive coverage when a hailstorm causing $800 of damage hits your car. Since your deductible is $1,000, it doesn’t make any sense to file a claim, so you just head to the body shop and soak up that repair bill on your own. Making claims for minor damages and repair costs is not really advantageous.

If you do decide to save by raising your deductibles, make sure you set some money aside in an emergency account. That way you’ll have the money to pay the deductible should you ever need to file a claim with your car insurance company. Just make sure to have a deductible you can comfortable pay should an emergency occur.

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