“What deductible should I choose for car insurance?”
This is one of the most common questions we are asked. Most of the policies we sell at Bradshaw & Weil, Inc. in Paducah, KY include car insurance deductibles of either $500 or $1000. There are many things to consider when choosing your deductible.
Deductibles & Premium
Higher deductibles equal lower premium; however, the difference is not always worth the out of cost pocket at a time of loss. Ask your agent to quote $500 & $1000 deductibles. Consider the out of pocket cost verses the difference in your premium.
Higher deductibles might also save you premium in the long run because they keep you from turning in smaller claims. Insurance is designed to protect you from catastrophic loss rather than a maintenance policy. Turning in small claims all the time will inevitably impact your premium and hurt you in the long run.
Deductibles & The Value of Your Vehicle
Get a reliable vehicle valuation from a place like Kelly Blue Book. Remember that insurance vehicle settlements are done at actual cash value. Not replacement cost. Comprehensive and collision coverage can be pricey. Selecting the $1000 deductible may save you premium but if your vehicles actual cash value is only $1000 then it would be a waste of money. Remember that your deductible is the amount you must pay before insurance pays. You want to make sure that your vehicle value is worth carrying comprehensive and collision coverage at all. If you decide to purchase those coverages then the vehicle value may help in determining which deductible would make the most sense for your situation.
Visit our website for more information on how we can protect your autos!