Auto Insurance Deductible

With the rising cost of automobile insurance rates, there is one way you can assist in controlling the rate you have to pay. In most cases you have the option of setting the level of the deductible for your car. Auto insurance deductibles can sometimes be as low as zero. However, putting all the risk on the insurance company will bring higher rates.

Requesting a $250 deductible can lower the rates by approximately 15 percent. Upping your deductible to $1,000 can lower the rates by as much as 40 percent. Few customers go above the $1,000 deductible. However, you can negotiate with your insurance company if you prefer to set your deductible higher. Just remember that the deductible you choose is the amount of out-of-pocket expenses you’ll have to pay on your car before your insurance coverage kicks in.

Depending on the value of your car, you may not need full coverage. If your car is worth less than $1,000 you may save more by carrying liability only coverage. Liability only does not cover damage to your vehicle, only covering the other person’s car. You are responsible for paying for all the damage to your car. If your car is worth less than $1,000 you might want to consider the savings.

Some insurance companies do not include glass coverage with liability only coverage. It is important to make sure your windshield is covered unless you can afford to pay $300 or more to replace your windshield (depending on type of windshield you have). The price of a new windshield is dependent on the type of car you own and the luxuries you have. The heat element that keeps your windshield from fogging over can cause the price of a windshield to be considerably higher.

Why is my windshield so important you might ask The windshield not only protects you and your family from flying debris; but it has been proven that in the case of a rollover, the windshield increases the strength of the roof caving in by 50 percent. That is an additional safety measure for you and your family.

Whenever you change your car’s insurance coverage you may want to talk with your insurance company asking them about any concerns you might have. Clear communication is the key to proper coverage. Ask straight forward questions to be sure that you have the coverage that best fits your needs.

When it comes to Home or Car Insurance you would need to honestly assess what you going to insure. An older home might need a low deductible insurance policy since more things may break and need to be replaced. A newer home might have a warrantee from the builder on it the first few years so you can away with a high deductible insurance policy.

Take a look at your savings and decide what amount you are comfortable with. Can you afford to pay a high deductible and still pay your bills Look at the worst case scenario before making your decision. While you might not be able to afford the thousand dollar deductible you might be able to afford the 500 dollar deductible insurance plan.

Insurance companies like Nationwide, Allstate, Liberty Mutual and Progressive can give you quotes on insurance policies based on different deductible amounts. Gather all the quotes together and make an informed decision about your deductible amount. It can definitely help you save money on your monthly bills.