Let's talk about the reasons why you would like to choose a high deductible car insurance while choosing your options to be insured. The deductible refers to the amount you are responsible for paying out of pocket before your insurance policy comes into effect. At OCHO we are always looking for ways to serve you better. We hope that this blog can help you make the best decision for your pocket and the safety of your family.
- By choosing a high deductible car insurance policy, you can benefit from lower premium costs. Choosing a higher deductible means taking on more financial responsibility in the event of an accident or any other claim you could make with your insurance, but it also allows you to save money as your monthly premiums will be lower.
- If you are a safe driver with a good driving record, maintain your vehicle in perfect conditions, and you live in a secure area with minimal accidents or thefts. The chances of needing to make a claim is relatively low for low-risk drivers like this. The savings from lower premiums can be worthy for the financial risk associated with a high deductible. Even though it would be wise to have an emergency fund in case you have an accident or need to make a claim to pay your deductible.
- If you have an older car and it is depreciating significantly in value, (this is a trend in the market with older cars right now) it may make more sense to choose a high deductible insurance policy. Better than paying for comprehensive collision coverage with a loss deductible might not be cost effective because the car's value is low. So a higher deductible can be better with the car's depreciated value.
- You will have more control in deciding when to involve your insurance company in a claim with a high deductible policy. For minor damages that cost less than your deductible you can choose to pay out of pocket without involving your insurance. This can help by avoiding filing claims that might affect your claims history and lead to premium cost increases.
Before deciding on high deductible insurance, it is very important to analyze your personal case, financial situation, driving habits, the safety of your location, and the value of your vehicle. While it can save you money over time, it is essential to ensure that you have sufficient savings to cover the deductible in the event of an accident or any claim that you might have to do with your insurance.
