Auto Insurance - Being Wise in Your Choice of Deductibles
Since auto insurance is mostly compulsory at least to an extent, the question is not whether one needs a coverage or not but how cheaply it can be gotten.
This quest for cheaper rates has made a lot of people act unwisely especially in their choice of deductibles.
Just in case some of us have forgotten what a deductible is, a deductible is the amount you choose to pay when you make a claim.
This means that if you are making a claim worth $10,000 and the deductible you chose is $2,000, you would be required to first produce the $2,000 before your insurer would provide the balance of $8,000.
Your insurer would not act until you have paid your deductible.
With this in mind, you can now fully understand the picture.
Drivers choose very high deductibles and enjoy lower rates because upon making a claim, the part the insurer would provide has been significantly reduced by the insured just so he or she can enjoy lower rates.
Let's look at this scenario.
A person chooses a very high deductible and enjoys very low rates.
After a while, the individual gets involved in a crash and makes a claim.
The insurance company then demands that the deductible is paid and he or she can't.
This effectively means there would be no claims settlement for that person because of the person's inability to come up with the deductible.
Drivers need to be very careful not to sacrifice tomorrows claim today on the altar of high deductibles for lower rates.
Every driver should choose a deductible as high as he or she is sure can be produced when needed.
In fact, since this deductible is required every time you make a claim, be sure it is an amount you can come up with even if you were unfortunate enough to have more than one accident over a short period.
Hoping you have fully understood the concept of deductibles and how you can effectively utilize it to your benefit, find more ways of lowering your rates by getting quick auto insurance quotes.
Quick auto insurance quotes when compared, one can find insurers who would provide the needed auto insurance coverage at a very competitive rate.
This quest for cheaper rates has made a lot of people act unwisely especially in their choice of deductibles.
Just in case some of us have forgotten what a deductible is, a deductible is the amount you choose to pay when you make a claim.
This means that if you are making a claim worth $10,000 and the deductible you chose is $2,000, you would be required to first produce the $2,000 before your insurer would provide the balance of $8,000.
Your insurer would not act until you have paid your deductible.
With this in mind, you can now fully understand the picture.
Drivers choose very high deductibles and enjoy lower rates because upon making a claim, the part the insurer would provide has been significantly reduced by the insured just so he or she can enjoy lower rates.
Let's look at this scenario.
A person chooses a very high deductible and enjoys very low rates.
After a while, the individual gets involved in a crash and makes a claim.
The insurance company then demands that the deductible is paid and he or she can't.
This effectively means there would be no claims settlement for that person because of the person's inability to come up with the deductible.
Drivers need to be very careful not to sacrifice tomorrows claim today on the altar of high deductibles for lower rates.
Every driver should choose a deductible as high as he or she is sure can be produced when needed.
In fact, since this deductible is required every time you make a claim, be sure it is an amount you can come up with even if you were unfortunate enough to have more than one accident over a short period.
Hoping you have fully understood the concept of deductibles and how you can effectively utilize it to your benefit, find more ways of lowering your rates by getting quick auto insurance quotes.
Quick auto insurance quotes when compared, one can find insurers who would provide the needed auto insurance coverage at a very competitive rate.
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