In our last blog post, we covered a few of the things that you should be considering when you are in the process of shopping around for insurance companies, but also when you’re trying to find the right coverage for you and any other drivers that will be on your insurance. One of the factors that we really want to go into more depth with is the choice that you have with your deductible.
For some people, it’s easy and straightforward to figure what a reasonable deductible is, but sometimes finding the right deductible can be tricky. Once you start adding more people to the list of insured drivers, it can get even trickier. If you are starting to look into what deductible you’d like, here are some of the things to factor into your decision.
Revisiting the Definition
A deductible is the amount of money that an insured driver will have to pay, out of pocket, before the insurance coverage starts to kick in. This is something that you should really spend time thinking on because of a budget that you are maintaining at any given time, as well as what the average accident can cost when car repairs and medical bills get factored in. That being said, these are just a few things to visit with each driver that is going to be covered on the insurance plan, so that you can get the right deductible.
How Often Are You Driving
Depending on the amount of time that you are driving the car and how far of a distance you are usually driving the car, you may want to consider having a lower deductible. The more that you’re driving and the further of distance that you’re going, the likelier the chances of you getting in an accident and requiring the assistance of an insurance company are. If you live within distance to work, school and town, and you are rarely using your car, having a higher deductible makes more sense, and will lower the amount that you’re paying for insurance.
A Realistic Budget
Some people are better than budgeting than others, and that’s just the way the world works, but being realistic with what your budget looks like on average is something that you should keep in mind when you decide what the best deductible is going to be. If you can’t afford to pay $1000 right when you are in an accident, even if that $1000 is a must in order for your car to work, then you should set a lower deductible. It’s better to have a car that you can count on, than make the situation worse with a higher deductible that you can’t afford.
These are only two of the things that you should be considering when looking into what your deductible should be. Sitting down with an insurance agent from Security Insurance Group in Fort Collins to talk about the deductible for your car insurance is another way that you can narrow down a deductible that is going to be best for you.
Make sure to check our next blog post where we will cover two other things that you should factor into your deductible decision.