When quoting auto insurance for clients, we frequently discuss how to choose the right deductible.
A deductible is the amount you pay out of pocket when you have a claim. If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and insurance would cover the rest.
The deductible you choose directly relates to the amount of money you spend on premiums each month. The higher the deductible ($250, $500, $1000), the lower your monthly cost.
So how do you choose? Cheaper price or lower out of pocket expense?
First, look at your emergency savings. Do you have enough cash available to cover a higher deductible if you had to pay it? If the answer is no, then you’re better off paying a little extra each month.
Compare the cost savings. When we run a quote, we can show you several different options. Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings.
You can always change your mind. If you’re short on cash now, but know you could afford more out of pocket next year, you’re always able to change. Keep your deductible in a comfortable range and you’ll always be well protected!
Call us at 360-452-9200 for more information! We specialize in personalized car insurance options for those living in the Port Angeles and Sequim area and anywhere in Washington State.