The deductible for your auto insurance coverage is the amount you pay yourself before the insurance provider picks up the tab. Understandably, many vehicle owners prefer to have a deductible for car insurance that’s reasonable. As for what’s considered a good deductible, the answer depends on several factors specific to your situation, preferences, and needs, which we go over below.
$500 Is Generally Considered a “Good” Auto Insurance Deductible
Increasing your auto insurance deductible lowers your monthly premium. However, this may not be all that great if you have to pay a lot more out of pocket in the event of an accident. For this reason, the general recommendation for what’s a good deductible is around $500, since this is usually a reasonably affordable out-of-pocket payment.
There Are Personal Factors to Consider
With auto insurance, you usually have the ability to determine your preferred deductible. This is a determination based on how much you’re willing or able to pay out of pocket. Other factors to consider include:
• The overall value of your insured vehicle(s)
• How much you can reasonably affordable with your monthly payments
• What kind of coverage you want to add beyond what’s required
Also, consider how likely it is you’ll have an accident. For instance, if you’re insuring a car you don’t use too often, a higher deductible is worth considering to lower your monthly payments. On the other hand, if your accident risks are statistically higher, a lower deductible can be more cost-effective. Additionally, consider whether or not your vehicle’s lease or loan requires a specific deductible. If this applies to you, there may be some added deductible flexibility later as you pay off your vehicle or get ready to renew your lease.
Understand When You Have to Pay Your Deductible
If you’re in an accident in which you’re responsible for the damage to your vehicle, you’ll have to pay your deductible. This also applies if you file a claim involving your collision coverage. Additional deductibles may apply if you’re considered at fault for the accident. In some instances, you may also have to pay a deductible when you’re partially at fault. When using uninsured motorist or comprehensive coverage to pay for vehicle damage, you’ll also likely need to pay your deductible. This is also typically true if fault is divided between you and the other driver and you opt to use your insurance to pay any related vehicle or medical expenses.
Not All Auto Insurance Coverage Options Have Deductibles
It’s also worth noting that not all types of auto insurance coverage have deductibles associated with what’s offered. For instance, liability coverage has no deductible. Uninsured motorist coverage for bodily injury also typically doesn’t have a deductible. On the reverse side of things, coverage usually subject to a deductible includes:
• Collision insurance
• Comprehensive insurance
• Personal injury protection
• Uninsured motorist coverage for property damage
• Mechanical breakdown insurance
When they need affordable, reliable auto insurance, San Diego drivers turn to Altra Insurance Services. For high-quality coverage and outstanding service, reach out to one of our friendly representatives today at (800) 719-9972 to learn how you can save money on your car insurance.