When shopping around for cheap auto insurance, you’ll have to consider the deductible amount you’re going to pay. Most auto insurance companies provide deductibles ranging from $500 to $2000. But it is possible to find providers offering deductibles as low as $250.
Your auto insurance deductible is the amount of money you have to pay for damages caused to your car before your insurance kicks in. Unfortunately, the lower your deductible is, the higher your premiums will be as insurance companies see you as a high-risk driver.
Therefore, when it comes to car insurance deductibles, you have to find a sweet spot that provides you with affordable insurance premiums. Here are some factors you can consider when selecting your auto insurance deductible.
1. The amount you’re willing to pay
Many car owners don’t realize that each time they file a claim, they’ll have to pay their deductible. For instance, if you file three claims in a year, you’ll have to pay your deductible three times. Therefore, if you choose a high deductible amount, paying your deductible could put a strain on your income.
Instead, it’s wise to select a manageable deductible amount that you can afford each time you file a claim.
2. Your driving history
Your driving history directly affects how many claims you file, which ultimately affects the number of times you pay your deductible. If you’re a low-risk driver, for example, it’s wise to pay a higher deductible since your chances of filing a claim are lower. However, for high-risk drivers, you may want to consider an affordable deductible as you are more likely to file more claims.
3. Your coverage
It’s vital to note that no matter the deductible amount you choose, your insurance only covers for expenses listed in your policy. For example, if you have liability coverage, the expenses covered are bodily injuries and vehicle damages for the other party involved in an accident.
Hence, if you have a high deductible, you’ll not only pay for damages to your vehicle but also your deductible. Instead, choose a deductible amount for each type of coverage you have.
At All Star Insurance, you can get low-cost insurance for your vehicle in Killeen, Texas. Contact us today to get an insurance quote.