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), the lower your monthly cost.
So how do you choose? Cheaper price or lower out of pocket expense? It pretty much comes down to this - pay now or pay later.
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. The same goes for not having collision or comprehensive coverage at all. If you can afford to pay for a new car out of pocket, then forgoing the coverage to save money, as long as you don't have a lien on the car, may be a good option for you.
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!
Call us at 888-565-2212 or visit us online for more information and a personalized quote! At the Bryan Insurance Agency we can help you with all of your car insurance needs whether it be in New Windsor, Long Island, or anywhere else in New York.