When quoting auto insurance for clients, we frequently discuss how to choose the right deductible. I thought I’d take a few minutes to share this information here on our website too!
A deductible is the amount you pay out of pocket when you have a claim. If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and insurance would cover the rest. The deductible you choose directly relates to the amount of money you spend on premiums each month. The higher the deductible ($250, $500, $1000, $2000), the lower your monthly cost. So how do you choose? Cheaper price or lower out of pocket expense? Basically it comes down to pay now or pay later and what you can afford at the time of a loss.
First, look at your emergency savings. Do you have enough cash available to cover a higher deductible if you had to pay it? If the answer is no, then you’re better off paying a little extra each month.
Compare the cost savings. When we run a quote, we can show you several different options. Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings. You can always change your mind. If you’re short on cash now, but know you could afford more out of pocket next year, you’re always able to change. Keep your deductible in a comfortable range and you’ll always be well protected!
If you have insurance with us now and would like to see how much your premium can change by changing your deductible give us a call. Or if you are interested in more information and a personalized quote call or visit us online! (888) 565-2212
At Bryan Insurance we are the leading agent for car insurance for the Hudson Valley, Long Island, and the surrounding New York areas.