Deductibles are part of two out of three elements of auto insurance: collision and comprehensive coverage. An insurance deductible is an amount a policyholder must pay before the insurer handles the claim. For instance, a deductible of $500 on collision coverage from website means that the driver is responsible for the first $500 in damages, while the insurer pays the rest.
The Deductible Affects the Monthly Premium
There are many ways for policyholders to save on auto insurance, but comprehensive and collision deductibles are some of the biggest. By choosing a higher deductible, a person can get a lower premium because the insurer may not have to pay anything at all on a claim for minor damage. Most drivers set a $500 deductible, but they can go up to $2000 or even more. If a deductible is set at $1500, a driver can save up to 20% per month. Lower deductibles mean less out-of-pocket cost after an accident, but the policyholder pays more each month.
A Vehicle’s Age May Affect the Insurance Deductible
Comprehensive Car Insurance Policies in Elyria OH pays to replace or repair a vehicle that’s stolen or suffers damage in a flood, fire or instance of vandalism. With collision coverage, the insurer pays to replace or fix a car that’s damaged in an at-fault accident. Insurance industry experts agree that both types of coverage, along with liability insurance, are all valuable for owners of newer vehicles.
However, as a vehicle ages and its value and reliability decline, owners may opt for replacement over repair in the event of a loss. If a person thinks that repair costs would exceed the value of the car, they may decide to raise their deductible while dropping comprehensive and collision coverage. State laws do not require motorists to have these two types of coverage; they only require liability, and in some areas PIP (personal injury protection).
Auto insurance is a necessity, and it’s illegal to drive without it. However, that does not mean that policyholders shouldn’t try to save as much money as possible–and deductibles are a great way to do it. By carefully considering the deductible when buying Car Insurance Policies in Elyria OH, drivers can get the coverage they need while minimizing out-of-pocket costs. You can also visit them on Facebook for more information.
