Auto Insurance Rates - How To Determine Your Deductible

In case, that you carry a comprehensive or collision coverage on your rates

, you have to select your deductibles, when you build your policy. Many insurance companies offer four or five deductible options, where you can select.

The deductible, which you will pick, is a share of losses, which you agree to pay without the assistance of your insurance company in the event of a covered loss. You have to select the deductible carefully, because not all of them are big enough to cover the losses.

1. Possible Deductibles

As a part of the rates you have to select the amount of the deductible. The insurance companies offer different deductible options to their policy holders, mostly from $ 100 to $ 1.000 concerning the auto insurance rates.

Actually you can choose, which deductible sum you want from the list of the deductibles set by the carrier. However, you cannot pick it arbitrarily, but you have to use one of the sums, which the carrier has determined.

2. Why The Limited Options?

There are reasons, why you will have from four to five deductible options for your auto insurance rates. The insurance companies have done complex calculations to determine the premiums for each deductible level. Because there is only from four to five deductible amounts, they have done the calculations and this makes the online service quicker.

3. Your Deductible And Your Premiums.

When you will think the amount of the deductible for your auto insurance policy, you should think first, how it will influence on your premiums. You may have a temptation to select a low deductible amount, but that will dramatically raise your auto insurance rates. The less you will pay, the more has your insurer to pay and that means higher policy payments.

4. Set The Deductibles As High As Possible.

Yes, this is the expert advice. If you will set your deductible amount as high as possible, you can put what you save on premiums into a savings account. These amounts serve as a reserve source of money, if you have to make a claim and to pay the deductible. It is important to note, that you may not have to make a claim and to use the saved deductible.

But what you know is that you have to pay for your car insurance premiums regardless, and this is the reason, why it is wise to keep your deductibles high and the premiums low.

by: Juhani Tontti

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