How Deductibles Affect Your Auto Insurance Costs

Carrying the wrong deductible can leave you paying far more out of pocket than you planned, either at the time of a claim or month after month in premiums. Understanding how auto insurance deductibles work may put you in a better position to choose coverage that fits your financial situation.

What Are Deductibles?

A deductible is the amount you agree to pay toward a covered claim before your insurance company pays the remainder. It applies to specific coverages on your auto policy, typically comprehensive and collision, and it resets with each new claim.

How Do They Work?

When you file a covered claim, your insurer can subtract your deductible from the total payout.  A higher deductible can reduce your premium but increase what you owe after an accident. Conversely, a lower deductible means higher premiums but lower out-of-pocket expenses if you need to file a claim.

How Can I Choose the Right Deductible Amount?

Consider your emergency savings, how often you drive and your vehicle’s value when choosing your deductible. If covering a large out-of-pocket expense would create financial strain, a lower deductible may serve you better. If you have savings set aside and rarely file claims, a higher deductible may reduce your monthly costs.

How Can Auto Insurance Discounters Help?

We work with multiple carriers, comparing deductible structures and premium options across policies to help you find the best option for your situation. We serve drivers across Independence, MO and take the time to review your coverage alongside your financial picture.

Contact Auto Insurance Discounters today to review your current deductible and request a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.