When you talk to a car insurance agent about purchasing auto insurance, you might want to talk about deductibles. If you purchase collision or comprehensive coverage, you will get to choose a deductible, which is the amount of money you pay after you cause an accident and file a claim. To choose the right amount, you might want to know the following four things.
1. You Can Choose the Amount for Your Plan
Your deductible only affects you if you file a claim for damages, but the good news is that you can choose the amount. You can decide how much money you feel comfortable spending after an accident. If you do not have a lot of money saved in your bank account, you might want to choose a low amount, such as $250. If you can afford to pay more, you can choose a higher amount, such as $1,000.
2. You Can Have Different Amounts for Different Coverage
Next, you should know that you can have a different amount for each coverage type you have. If you choose a policy that only offers liability coverage, you will not have a deductible, as liability does not cover damages to your car. If you choose a plan with comprehensive and collision, you can pick a different amount for each type. You can also choose the same amount if you prefer.
3. A Higher Amount Yields a Lower Premium
You might wonder how your deductible affects your premiums, and you can ask an agent to learn more. The bottom line is that a higher deductible yields a lower policy cost, whereas you will pay more for your plan if you choose a lower amount.
4. You Do Not Pay the Amount in Some Cases
If you cause a collision and want to fix the damages to your car, you must file a claim. If this occurs, you will pay the deductible. If someone else collides with you and is responsible for the accident, you can file the claim with that person's insurance. In this situation, you will not have to pay the deductible on your policy, as you are not using your insurance to pay the damages.
Making the right decisions when buying auto insurance is vital, and this information might help you make the right decisions about your deductibles. If you want to buy a car insurance plan, talk to an agent of your choice to get started.