High or low Deductibles, The logic behind both

It is important to understand what a Deductible is. A Deductible is an amount you’re responsible to pay before your insurance pays their portion. For example, if you were in a collision and the ambulance had to take you to the emergency room; You would have to take care of your deductible portion first, and then the health insurance would cover the rest. We will use high or low car insurance Deductibles as an example.

What is a high Deductible?

A high deductible is a higher amount of money you pay before the insurance coverage takes place. One of the greatest reasons to go with a high auto insurance deductible is because it will help lower your monthly premium. This will save you money in the long run, even though you’re paying a higher cost in the event of a claim.

Pros and Cons of a High Deductible

One pro of having a high deductible is that you can reduce your premium by a significant amount. For example, if you raise your deductible from five-hundred dollars one-thousand dollars, it can reduce your premium by about thirty percent according to the Insurance Information Institute. The best way to find out the difference that you’re saving is to use a free auto quote insurance tool to determine the difference.

In the long run, this allows you to save more money in your pocket. The downside is that you’re having to upfront a significant amount. Also, depending on the coverage you have, it will only cover things such as comprehensive or collision. The best way to find out how high deductibles can save you money, is to use a comparison tool and range the deductible between zero dollars to one-thousand dollars. This will give you a better idea of what your premium may look like. Remember, these are just estimates, so you won’t have a final quote until you talk to your insurance representative. Call Carver Insurance Services, Inc. to receive accurate auto insurance quotes at 951-677-9600

What is a low Deductible?

A low deductible is when you have to pay little or nothing at all. When money is tight and you’re in a sticky situation with your finances, having a lower deductible can ease the worry of having to pay a significant amount that you don’t have at the time of an incident.

Pros and Cons of Low Deductible

Having a low deductible allows you to pay out less in the event of a claim, but your monthly premiums will go up in cost. A good thing to keep in mind is if you’re leasing or renting a car it’s best to have a low deductible. This helps if you have a small fender bender and the damage is minimal. Depending on the circumstance of your car and the scenario you are in, a low deductible can definitely save you from having to dish out a lot of money.

Choosing a Deductible is a preference, it varies with your financial situation and goals. Keep these six questions in mind when choosing:

1. What does your emergency fund look like?
2. What are the various costs for different deductibles?
3. What is your risk?
4. Is a vanishing deductible a good option?
7. Does it make sense to choose a different deductible for different coverage?

For additional information or help with a new policy Contact Carver Insurance Services 40525 California Oaks Road Suite E-6 Murrieta CA 92562 Phone: 951-677-9600 http://insuredbycarver.com/

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