How To Choose Auto Insurance Deductible


Whether you’re buying a brand new car or have an old hand-me-down, before you hit the roads anywhere in Florida, you should have a car insurance policy issued by a registered insurance company. It’s illegal to drive otherwise!

Choosing an auto deductible is a personal decision depending on your comfort level and risk that you’re willing to take. An insurance agent can facilitate you by providing you with information you need to make an educated decision. However, they will not decide which policy to choose for you.

Are you grappling with what package and deductibles to choose? Look no further. Below, we bring you a comprehensive guide to choose car insurance deductible, which suits your budget.

What Is An Auto Insurance Deductible?

It’s the amount of money you’ll pay from your pocket before the insurance company pays the rest. It depends on the policy’s pre-defined coverage limit. Say, for instance, you crashed into a pole while reversing your car, and the damage repair costs you $2,500. For the repairs to be covered by the policy, you will have to register a car accident claim. Suppose you have set a $500 deductible, the insurance company will cover the remaining cost of $2,000.

Things To Consider When Choosing Auto Insurance Deductible

Can You Afford The Deductible?

You should consider your bank account when deciding on a deductible. A $1,000 deductible is not a good option if you cannot afford the amount. We would advise against a loan for the repairs – accidents happen. If you take the risk of $1,000 deductible, then be prepared to pay for it when the time comes.

It’ll be very frustrating not to drive your car because you didn’t plan wisely. Save money! Saving can be hard, but it’s smart to do so. Your emergency funds can help you cover the deductible.

crashedWhat Is Your Car’s Worth?

The more expensive your vehicle is, the more it will cost to insure. A higher deductible cost is viable for an expensive car as it will ensure significant savings. However, you would be at a loss if your old vehicle carries a high deductible.

For instance, if your car is ten years old, you wouldn’t want to have a $ 1,000 deductible because the car’s value would be within a couple of thousand dollars of the deductible amount. The difference in savings that you’ll get with $1,000 versus $500 deductible would be insignificant.

What Is Your Risk?

Do you have a track record of crashing into poles and trees? Do you drive at peak hours? If the answer is yes, then you may want to consider the lower deductible cost because you pay your deductible for each accident, no matter how many they are.

For instance, your deductible is $1,000, and your repair cost for hitting a tree is $1,100. You’ll have to pay $1,000, and the insurance company will cover $100. Coming month, you bump into a fire hydrant, and your repair cost is $800. You’ll have to pay the entire amount from your pocket because your deductible cost is higher. You would be much better off with a $500 deductible.

Deciding the right deductible amount can be overwhelming and confusing sometimes. If you’re in Bradenton, FL, and stuck at any point in deciding the right car insurance deductible, contact Manatee Insurance Services Inc. We have been working locally for the past thirty-five years. We’ll help you save money and help in choosing the right insurance package for your car!

We are a leading insurance company in Florida offering auto insurance, homeowners insurance, and other types of insurance coverage in Bradenton, FL. Call us at 941-747-7283 to speak with our agents for any questions regarding your insurance policies.

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