How to Choose Your Car Insurance Deductible

When you make a car insurance claim, you pay the deductible before coverage kicks in. Comprehensive and collision coverage (which can pay for damage to your car) typically include deductibles. In some states, uninsured/underinsured property damage and personal injury protection claims also require deducible payments.

How Deductibles Affect Auto Insurance Premiums

Insurers use several metrics to set auto insurance premiums, including the coverage and deductible you choose.

In general, lower deductibles result in higher premiums. However, raising deductibles to trigger lower insurance costs isn’t right for every driver.

Higher deductibles can result in more financial responsibility in the event of a claim. Your insurer may require you to pay the deductible upfront when you make a claim after your car is damaged.

Many drivers choose a $500 deductible, but insurers typically offer deductibles of $250, $1,000 and $2,000 as well.

Review Your Auto Insurance Coverage

Our team at Dowd Insurance can help you get favorable rates by periodically shopping around for the right combination of price and coverage. If its time to shop your auto insurance, start a FREE quote online now. If you’re not sure if you have the right coverage, contact us today for a coverage review.