Times are tough and money seems to be short supply for a lot of people. One area some have considered, in an effort to save money, is to maintain higher deductibles on their comprehensive auto insurance. Is that really an economically sound idea?
It’s true that higher deductibles mean less out-of-pocket expense for your auto insurance each month and if those savings were to be put in a “rainy day fundâ€, then an argument can be made for such a plan of attack. Unfortunately, when people switch to higher deductibles in an effort to save money, that “savings†is typically spent on other bills, and not kept aside for when they need to make an insurance claim. Then, in the case of an accident, they find themselves footing the bill for $1,000 to fix their cars instead of the $250 they would have had to pay before they raised their deductible. There are better ways than raising your deductible to keep your rates low, such as maintaining a good driving record.
Obviously, it is each person’s personal decision when it comes time to choose an auto insurance deductible. Keep in mind whether you will be able to afford to meet that deductible should you ever need to make a claim, or you may find yourself without your car for an extended period of time. If it will be a stretch to come up with the cash needed to repair your car, then lower deductibles are clearly the best auto insurance plan for you.
Get an Auto Insurance quote today so that you can make the best financial decision for you and your family.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.
