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How to Choose Insurance Deductibles

Choosing the car insurance deductible amount that works best for you requires taking a closer look at your needs and lifestyle. Use the guide below—created by CarTek Collision in Los Angeles—to decide on a deductible amount that will support your driving habits and current and future finances.

Car Insurance Deductibles Recap

To review, a car insurance deductible is a set amount of money you agree to pay out of pocket should you need to file a claim and use your insurance. You are responsible to pay any damage costs up to your deductible amount each time a claim is filed. If the damages exceed your deductible amount, your insurance provider will pay for the rest.

In general, the higher the deductible amount you commit to, the lower your monthly insurance rates will be. Typical car insurance deductible amounts range from $250 to $1,500. To help determine whether you should you be on the high or low end of that range, or somewhere in the middle, consider the following:

Your Finances

The number one rule of choosing insurance deductibles is finding the amount that won’t disrupt your financial stability if you should need to use it. If money is tight right now, choosing a low deductible is one option. The issue is low deductibles are linked to higher monthly insurance rates, which may throw your monthly budget off.

The key is finding a balance between the two. Choosing the highest deductible amount you’d be comfortable paying out of pocket is your best bet.

Where You Live and Your Accident History

Taking a look at where you live and your accident history can help you determine whether a low, medium, or high deductible is better for you.

If you live in or commute to a crowded city where minor accidents are common, a lower deductible amount is going to be the wiser option.

Why? Remember that every time a claim is filed, you have to pay up to your deductible amount. When damages amount to less that your deductible, you won’t get any money from your insurance company for the damages.

• For example, if you have a deductible of $500 and are found at fault for $450 in damage, you will pay the $450.
• With a lower deductible, say $300, if you’re found at fault for $450, you would pay $300 and your insurance provider would cover the remaining $150.
  

When Higher Deductibles Work Best

if you have money saved up and a pretty clean driving record, choosing a higher insurance deductible amount will save you money on your monthly insurance rates.

Using your accident history, where you live, and your finances as guiding factors, finding the right deductible amount for your car insurance doesn’t have to be difficult.

When you get into a car accident and it comes time to apply your insurance deductible, make sure you choose a collision repair provider you can trust to do the appraisal work and put your coverage to good use.

Eagle Rock, Los Angeles, Pasadena and Glendale area drivers looking for a reliable collision repair facility in Los Angeles area can contact the experts at CarTek Collision for fair, professional estimates and top-quality body work performed by collision specialists.