When choosing what insurance policy you want to purchase, selecting a deductible is a very important step. Deductible is the amount an insured person must pay before the insurance company pays the remainder of each covered loss, up to the policy limits. For example, if an accident that causes $3000 worth of damage and your deductible is $500, you have to pay $500 and the insurance company would cover the remaining which is $2500.
Figuring out how much you are willing to pay and how often you think you will need to make an insurance claim will help you decide what deductible amount is right for you. Moreover, the premium you pay, or the price of your total coverage annually, can be lowered by choosing a higher deductible. If you are willing to pay higher out-of-pocket costs, you can lower the total cost of your insurance. You should also consider a deductible that you can afford to pay if you are involved in a car accident.
When choosing the policy, you want a policy to take care of your expenses in the event of accident, theft, vandalism or most any other instance in which there is a damage to your or someone else’s car. You also want to find out what your state requires and discounts you qualify for.