17 Oct Auto Insurance Quotes Buying Tips #5 Auto Insurance Deductible
What is an Auto Insurance Deductible?
One of our carriers, Travelers, has a helpful outline on auto insurance deductibles, which we included below:
“An auto insurance deductible is the amount of money you must pay out of your own pocket before your car insurance kicks in. Deductibles only apply to certain coverages, such as comprehensive and collision, and typically range from $100 to $1,000.
A policy limit (or “limit of liability”) is the maximum amount your insurance company will pay for any claim covered under your policy. Policy limits are often comprised of two dollar amounts — for example, $100,000/$300,000. The first amount ($100,000) would be the per person policy limit, while the second amount ($300,000) is the total limit in case of a covered accident.
Here’s one example of how auto insurance deductibles and policy limits work. Let’s say your car is damaged in an accident you caused, you have collision coverage with a $1,000 deductible. If the cost to repair your car is $500, you will pay the entire $500 since it is less than your deductible.
To keep monthly premiums low, drivers often opt for higher deductibles and lower policy limits. But if you can’t pay your deductible or accident-related expenses above and beyond your policy limits, you may find yourself in financial crisis. Choose wisely. Consider your risk tolerance and financial circumstances when deciding the level of protection that’s right for you and your family – then work with your insurance representative to create a policy that balances your individual needs with a premium, deductible and policy limit you can afford.”
To make sure you and your family are properly protected, please talk with one of our insurance experts. We have three offices conveniently located in: Leominster (978-534-2800); Gardner (978-632-1098); Westminster (978-874-2921) or email us at firstname.lastname@example.org to learn more. Or request a quote through our website at car insurance quotes. It’s your vehicle. Let’s protect it. In addition to contacting Anderson, Bagley and Mayo Insurance if you have questions about your auto insurance, please visit the Insurance Information Institute (I.I.I). For almost 60 years, the I.I.I. has provided definitive insurance information. Today, I.I.I. is recognized by the media, governments, regulatory organizations, universities and the public as a primary source of information, analysis and referral concerning insurance.
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